In the early hours of May 25, Beijing time, the Federal Reserve released the minutes of its May monetary policy meeting. The minutes showed that Fed officials agreed that inflation was still too high and that the rate of decline was slower than expected. Fed officials were divided on whether to pause interest rate hikes in June, stressing that they would rely on data to make a decision, but said a rate cut was unlikely.
On May 25 local time, Vincent Reinhart, chief economist of Dreyfus and Mellon, who has worked in the Federal Reserve for more than 20 years, was interviewed by the media. credit rating environment.
Vincent Reinhart said the Fed must keep its policy rate restrictive because once the Fed “skips a meeting,” that is, pauses in raising interest rates, it will be difficult to change the policy rate at the next meeting. In addition, he pointed out that whether the solution to the debt ceiling includes a slowdown in federal spending, it will make the Fed restraint when the economy slows down. “If the debt negotiations are pending, it will be difficult for them to act.”
Former Fed economist: The Fed’s policymaking is limited by the U.S. debt ceiling and the suspension of interest rate hikes will encounter problems. Click on the video to see it!
2023-05-26 10:35:15
#Fed #Economist #Feds #policymaking #limited #U.S #debt #ceiling #suspension #interest #rate #hikes #encounter #problems
