US Federal Reserve officials, unanimous on the need for a rate cut in September, but the rationale varies.
September 4, 2024, 7:23 AM GMT+9 (excerpt)
Just two months ago, most Federal Reserve Board (FRB) officials did not think they would cut interest rates at the September 17-18 meeting.
However, by late August, almost all officials had come to a similar view after FRB Chairman Powell said at the annual Jackson Hole Symposium that the time had come to adjust policy.
The main reason is that a wide range of data has moved in one direction. As a result, Federal Reserve officials were pushed to reassess the risks to the outlook, whether the main concerns are persistent inflation, weakness in the labor market, worsening financial conditions for businesses and households, policy errors, or a combination of these factors.
However, by late August, almost all officials had come to a similar view after FRB Chairman Powell said at the annual Jackson Hole Symposium that the time had come to adjust policy.
The main reason is that a wide range of data has moved in one direction. As a result, Federal Reserve officials were pushed to reassess the risks to the outlook, whether the main concerns are persistent inflation, weakness in the labor market, worsening financial conditions for businesses and households, policy errors, or a combination of these factors.
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