Live: Three US Federal Reserve officials said that the data that will be issued in the coming period will guide their decision on when to cut interest rates, explaining that they have not yet seen sufficient evidence to begin monetary easing.
According to Bloomberg East Economy, San Francisco Federal Reserve Bank President Mary Daly said in an interview on Fox Business: “Although I think it is appropriate for us to look ahead and ask when monetary policy adjustments will be necessary, so as not to put pressure on… “Economically, it’s really too early to think that this is around the corner.”
“Do I find consistent evidence that inflation is falling, or do I find any early signs that the labor market is starting to falter? None of these things currently lead me to believe that an adjustment is necessary,” added Daly, who votes on monetary policy decisions this year. “.
The odds of a March rate cut have declined sharply in the past few days, falling below 50 percent on Friday, and Federal Reserve officials, including Daly, have disputed market expectations of imminent and deep interest rate cuts this year.
Although Atlanta Federal Reserve President Rafael Bostic is open to changing his expectations, he still expects the first interest rate cut will not be made before the third quarter.
He also said in an interview with Fox Business: “I would be open to changing that forecast and my view on when we need to start lowering interest rates.” But he added that he wanted to “make sure we are on our way to 2 percent (inflation rate) before we abandon our restrictive stance.”
Policymakers’ quarterly expectations starting in December implied three interest rate cuts in 2024, or cuts of about 75 basis points.
Data is the standard.
“If we continue to make surprising, faster-than-expected progress on inflation, we have to take that into account when determining the level of restriction,” Chicago Federal Reserve President Austin Goolsbee said in an interview with CNBC. He added that with inflation declining, “it is clear that we are evaluating the response.”
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2024-01-21 17:14:40
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