US Fed - Maybe No Rate Cuts Anytime Soon
I know…it sucks to even see this headline, I feel your pain.
US Federal Reserve Chair Jerome Powell and other top U.S. central bank officials have recently made it clear that interest rate cuts are not imminent. Powell emphasized that the current tight monetary policy needs to continue for a longer period to ensure inflation approaches the Fed’s target of 2%. Despite previous expectations of rate reductions this year, recent economic data showing persistent inflation has led to a more cautious stance.
Initially, investors anticipated that rate cuts could start in June, with further reductions by the end of 2024. However, these expectations have been adjusted, with the first cut now not expected until September, and doubts are increasing about subsequent cuts.
Powell mentioned that while the Fed has the flexibility to ease policies if necessary, especially if the job market weakens, for now, the focus remains on controlling inflation.
Fed Vice Chair Philip Jefferson also supported the need for prolonged restrictive monetary policy, highlighting ongoing economic strength and the slow progress in reducing inflation. Jefferson pointed out that despite some improvements, the overall economic indicators do not yet support a change in policy towards reducing rates.
In summary, both Powell and Jefferson are preparing for a more extended period of high interest rates to combat inflation, countering earlier predictions of rate cuts starting mid-year.
This stance reflects a broader reassessment among Fed officials and analysts as they observe stronger economic performance and persistent price pressures.
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tanvi : I don't feel the pain. I see dip buying![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Ziet Invests OP : many are predicting a September or 2025 cut! interesting…
Election = december won’t cut? haha
Jremy : Roti prata
BullBearHenry : Highly unlikely any rate cut at least till 4th quarter this year. Also US election year too.
•103702593• : looks like USD 1 : MYR 4.4 dream crash![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")