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Fed's Mouthpiece: Fed Rate Cut Finally Comes into View

Fed's Mouthpiece: Fed Rate Cut Finally Comes into View

Bitget2024/07/28 12:53

According to a news report by BlockBeats on July 28, in the latest article by "Fed's mouthpiece" Nick Timiraos, it is stated that although Federal Reserve officials are unlikely to cut interest rates next week, developments in inflation and the labor market should signal a rate cut at the September meeting. Jerome Powell, who tends to take action earlier, has been weighing the risks between cutting rates too soon and waiting too long. This issue will be resolved at next week's meeting. Officials hope for more evidence that inflation is indeed cooling before crossing the threshold of rate cuts. Nevertheless, they are increasingly concerned that waiting too long could lead to a soft landing bubble. The Fed's readiness to cut rates reflects three factors: favorable inflation conditions, cooling job market and changing considerations about allowing inflation to remain at excessively high levels and causing unnecessary economic weakness.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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