The Fed’s loudspeaker spoke before the meeting: After cutting interest rates in December, officials may be preparing to slow down or even stop cutting interest rates.
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2024-12-16 14:03 9,750
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Golden Finance reported that Nick Timiraos, a well-known reporter for the Wall Street Journal who is known as the Federal Reserve’s mouthpiece, wrote a latest article saying that the Federal Reserve’s interest rate cut plan is constantly changing, and investors generally expect it to cut interest rates for the third consecutive time this week. After that, officials are prepared to slow or even stop cutting interest rates.
Nick Timiraos said Powell is trying to find his niche amid signs that the labor market is less wobbly and inflation is slightly firmer than in September. Some officials have expressed doubts about continuing to cut rates, and officials who had been strong supporters of the previous two cuts are no longer so convinced.
One option this week is to cut interest rates by 25 basis points and then use new economic forecasts to strongly suggest the central bank is prepared to cut rates more slowly. (Golden Ten)