Investing.com – Atlanta President Rafael Boucek said on Tuesday that he expects a rate cut of just 25 basis points this year when he updated his forecast at the US central bank’s meeting last month. .
But Busiek said his forecasts are not fixed, and he could change them as needed in response to incoming data about inflation and the labor market. “I’ll keep my options open,” he said.
On the other hand, the President of the Federal Reserve Bank of San Francisco, Mary Daly, said on Tuesday that the central bank will make more interest rate cuts this year as long as the data meets the expectations, while giving note that even with the interest rate cut last month, there is still a policy. … Money works to reduce inflationary pressures.
The half-percentage-point cut implemented in September was “in recognition of the progress we’ve made and to loosen monetary policy a little, but not abandon it,” Daly said in a speech before event at New York University.
“Even with this change, policy remains restrictive, putting further downward pressure on inflation to ensure it reaches 2%,” said Daly.
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Cut levels a couple of hours?
If inflation comes down as central bankers expect, “I think a rate cut or two this year would be a reasonable thing” for the central bank to implement, said Daly, whose vote on the Federal Open Market Committee to set rates. this year.
Speaking to reporters after her public comments, Daly declined to say how far she wanted the Fed to cut rates and declined to say whether she planned to stop. on changing interest rates at the Federal Open Market Committee meeting in November. good idea
Last month, the Fed cut its interest rate target to between 4.75% and 5% in recognition of easing inflationary pressures and rising risks to the labor market, and further cuts of 50 basis points are expected at the end of the year. But strong employment data in September showed the labor market was stronger than most people expected, raising questions about the pace and size of future interest rate cuts.
Daly also said in her remarks that “the economy is in better shape,” with lower inflationary pressures and a stable labor market.
She emphasized that the current unemployment rate of 4.1% is around the long-term average and that the labor market conditions are now close to where they were before the pandemic began. Daly also said the labor market is “no longer a major source of inflationary pressure.”
2024-10-16 08:48:00
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