Financial Times on Nostr: A crisis of confidence at the Fed ========== The Federal Reserve, chaired by Jay ...
A crisis of confidence at the Fed
==========
The Federal Reserve, chaired by Jay Powell, is set to cut interest rates on Wednesday, with discussions around a quarter- or half-point cut. Until last Thursday, Fed officials indicated no dramatic changes were necessary, but recent reports suggest a potential shift towards a 0.5 percentage point cut. Financial markets reacted to these reports as a signal of internal Fed discussions. The timing is sensitive due to the upcoming presidential election in September 2024, with Donald Trump criticizing potential rate cuts. Comparisons are drawn to 2014, with rising US oil production and falling Brent crude prices. Tiff Macklem, governor of the Bank of Canada, hinted at accelerating rate cuts due to a weaker Canadian economy. Surveys indicate a consensus among US academics against weakening Fed independence and price controls, while Italy faces rising coffee prices. Powell's statement about being 'data dependent but not data point dependent' raises concerns about market perceptions.
#FederalReserve #InterestRates #JayPowell #DonaldTrump #OilPrices #BankOfCanada #EconomicPolicy #Inflation #FinancialMarkets #2024Election
https://www.ft.com/content/f377b900-a459-4784-ba9a-0d4b1fb5dfab
==========
The Federal Reserve, chaired by Jay Powell, is set to cut interest rates on Wednesday, with discussions around a quarter- or half-point cut. Until last Thursday, Fed officials indicated no dramatic changes were necessary, but recent reports suggest a potential shift towards a 0.5 percentage point cut. Financial markets reacted to these reports as a signal of internal Fed discussions. The timing is sensitive due to the upcoming presidential election in September 2024, with Donald Trump criticizing potential rate cuts. Comparisons are drawn to 2014, with rising US oil production and falling Brent crude prices. Tiff Macklem, governor of the Bank of Canada, hinted at accelerating rate cuts due to a weaker Canadian economy. Surveys indicate a consensus among US academics against weakening Fed independence and price controls, while Italy faces rising coffee prices. Powell's statement about being 'data dependent but not data point dependent' raises concerns about market perceptions.
#FederalReserve #InterestRates #JayPowell #DonaldTrump #OilPrices #BankOfCanada #EconomicPolicy #Inflation #FinancialMarkets #2024Election
https://www.ft.com/content/f377b900-a459-4784-ba9a-0d4b1fb5dfab