The Manila Times on Nostr: Powell: Fed on track to cut rates ========== Federal Reserve Chairman Jerome Powell ...
Powell: Fed on track to cut rates
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Federal Reserve Chairman Jerome Powell stated in an interview that the US central bank is planning to cut interest rates three times this year, with the first cut expected to begin in May. Powell emphasized that the nation's job market and economy are strong, and there is no sign of a recession. The Federal Reserve's next meeting in March is likely too soon for a rate cut, but most economists believe the first cut will come in May or June. The central bank's goal is to lower the cost of mortgages, auto loans, credit cards, and other consumer and business borrowing. Inflation has been cooling, and nearly all members of the Fed's policy-setting committee agree that rate cuts will be appropriate this year. In December, Fed officials indicated that they envision three rate cuts in 2024, reducing the benchmark rate to about 4.6 percent by the end of the year. Powell attributed the inflation surge of 2021-2022 to the disruptions caused by the pandemic and the resulting supply chain disruptions and shortages. He acknowledged that the Fed misjudged the duration of the inflation and should have raised rates earlier. Powell emphasized that the Fed wants to see further evidence that inflation is in check before cutting rates. Other Fed officials have expressed caution about rate cuts, particularly after a government report showed unexpected job growth in December.
#FederalReserve #InterestRates #Inflation #UsEconomy
https://www.manilatimes.net/2024/02/06/business/top-business/powell-fed-on-track-to-cut-rates/1931291
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Federal Reserve Chairman Jerome Powell stated in an interview that the US central bank is planning to cut interest rates three times this year, with the first cut expected to begin in May. Powell emphasized that the nation's job market and economy are strong, and there is no sign of a recession. The Federal Reserve's next meeting in March is likely too soon for a rate cut, but most economists believe the first cut will come in May or June. The central bank's goal is to lower the cost of mortgages, auto loans, credit cards, and other consumer and business borrowing. Inflation has been cooling, and nearly all members of the Fed's policy-setting committee agree that rate cuts will be appropriate this year. In December, Fed officials indicated that they envision three rate cuts in 2024, reducing the benchmark rate to about 4.6 percent by the end of the year. Powell attributed the inflation surge of 2021-2022 to the disruptions caused by the pandemic and the resulting supply chain disruptions and shortages. He acknowledged that the Fed misjudged the duration of the inflation and should have raised rates earlier. Powell emphasized that the Fed wants to see further evidence that inflation is in check before cutting rates. Other Fed officials have expressed caution about rate cuts, particularly after a government report showed unexpected job growth in December.
#FederalReserve #InterestRates #Inflation #UsEconomy
https://www.manilatimes.net/2024/02/06/business/top-business/powell-fed-on-track-to-cut-rates/1931291