ABC News on Nostr: Inflation data this week could help determine Fed's timetable for rate cuts ...
Inflation data this week could help determine Fed's timetable for rate cuts
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Federal Reserve officials will meet this week to discuss the possibility of interest rate cuts. The government's latest snapshot of U.S. inflation will be released on Wednesday, just before the Fed begins its policy discussions. The Fed added a sentence to its statement after its last meeting in May, stating that there has been a lack of further progress in bringing inflation back to the central bank's 2% target. If the May inflation report shows signs of improvement, the Fed may drop that sentence from its statement, indicating a potential rate cut. However, most economists believe that no rate cuts are likely before September. Fed Chair Jerome Powell is expected to emphasize the need for several more months of low inflation readings before considering rate cuts. A Fed rate cut could give the economy a modest lift and benefit President Joe Biden's re-election campaign. The Fed's benchmark rate is expected to remain unchanged at roughly 5.3%. Powell may also address concerns about the weakening economy and the impact of higher rates. The Fed's cautious approach to rate cuts contrasts with some overseas central banks, such as the European Central Bank and the Bank of Canada, which have recently reduced rates.
#FederalReserve #InterestRateCuts #Inflation #Economy #RateHike
https://abcnews.go.com/US/wireStory/inflation-data-week-determine-feds-timetable-rate-cuts-110976198
==========
Federal Reserve officials will meet this week to discuss the possibility of interest rate cuts. The government's latest snapshot of U.S. inflation will be released on Wednesday, just before the Fed begins its policy discussions. The Fed added a sentence to its statement after its last meeting in May, stating that there has been a lack of further progress in bringing inflation back to the central bank's 2% target. If the May inflation report shows signs of improvement, the Fed may drop that sentence from its statement, indicating a potential rate cut. However, most economists believe that no rate cuts are likely before September. Fed Chair Jerome Powell is expected to emphasize the need for several more months of low inflation readings before considering rate cuts. A Fed rate cut could give the economy a modest lift and benefit President Joe Biden's re-election campaign. The Fed's benchmark rate is expected to remain unchanged at roughly 5.3%. Powell may also address concerns about the weakening economy and the impact of higher rates. The Fed's cautious approach to rate cuts contrasts with some overseas central banks, such as the European Central Bank and the Bank of Canada, which have recently reduced rates.
#FederalReserve #InterestRateCuts #Inflation #Economy #RateHike
https://abcnews.go.com/US/wireStory/inflation-data-week-determine-feds-timetable-rate-cuts-110976198