Fed to Cut Rates Slowly Amid Inflation Concerns

Fed to Cut Rates Slowly Amid Inflation Concerns

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Fed to Cut Rates Slowly Amid Inflation Concerns

Federal Reserve Chair Jerome Powell announces plans for slow, deliberate interest rate cuts, citing persistent inflation and economic strength. Uncertainty remains about the extent of future cuts.

English
United States
EconomyUs PoliticsLabour MarketInflationInterest RatesFederal ReserveMonetary Policy
Federal ReserveDallas Fed
Jerome PowellDonald TrumpLorie Logan
How does the Fed's benchmark interest rate affect the broader economy?
The Fed's benchmark interest rate influences borrowing rates across the economy. Other factors, like inflation expectations and economic growth, also impact longer-term rates.
What are the predictions for future interest rate cuts beyond December?
Economists predict a quarter-point rate cut in December, following previous reductions. However, future rate cuts are uncertain, with Wall Street traders expecting fewer reductions than initially signaled by the Fed.
Why does Powell emphasize the Fed's independence from political influence?
Powell emphasized the importance of the Fed's independence from political influence to maintain public confidence in its ability to control inflation. This confidence helps to keep inflation low.
What is the perspective of other Federal Reserve officials on further rate cuts?
Lorie Logan, president of the Dallas Fed branch, echoed Powell's cautious approach, warning against cutting rates too far and potentially reigniting inflation.
What is the Federal Reserve's plan regarding interest rate cuts in the coming months?
Jerome Powell, Chair of the Federal Reserve, announced that the Fed will likely cut interest rates slowly and deliberately in the coming months. This is due to persistent inflation and a desire to monitor its trajectory before making further decisions.