Fed officials agreed to a number of key policy statement changes during the July meeting that opened the door to a rate cut at their gathering next month
While the focus is now on September for the start of Fed eral Reserve interest rate cuts, at least some U.S. central bankers were keen to get the debate about it rolling at last month’s policy meeting.
That expectation was further solidified by Fed Chair Jerome Powell’s remarks in his post-meeting news conference, when he said: “If we were to see inflation moving down … more or less in line with expectations, growth remains reasonably strong, and the labour market remains consistent with current conditions, then I think a rate cut could be on the table at the September meeting.”
“The balance of risks has shifted, so the debate about potentially cutting rates in September is an appropriate one to have,” Minneapolis Fed President Neel Kashkari said in an interview with the Wall Street Journal that was emblematic of the shift among policy-makers. Until now Kashkari had emphasized the importance of ensuring inflation returns to the Fed’s 2 per cent target, even if that meant leaving rates where they are until near the end of this year.
Rate Debate Fed Size Expectation Inflation Point Neel Kashkari Federal Open Market Committee Jerome Powell
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed minutes to show depth of debate over a July rate cutWhile the focus is now on September for the start of Federal Reserve interest rate cuts, at least some U.S. central bankers were keen to get the debate about...
Read more »
U.S. Federal Reserve officials show more openness to September rate cutFinancial markets broadly expect the Fed to cut interest rates by a quarter of a percentage point at its Sept. 17-18 meeting, which would mark its first such move in this policy cycle
Read more »
Top official says Federal Reserve can't risk being too late with rate cutsWASHINGTON (AP) — A top Federal Reserve official warned Wednesday that the Fed needs to cut its key interest rate before the job market weakened further or...
Read more »
Inflation Slipped to 2.9% in July, Keeping Fed on Track to Cut RatesThe consumer-price index rose 2.9% in July from a year earlier. The report marks the first time that the CPI has edged firmly below 3% since early 2021.
Read more »
U.S. inflation slowed again in July, clearing the way for the Fed to begin cutting ratesYear-over-year inflation reached its lowest level in more than three years in July, the latest sign that the worst price spike in four decades is fading and setting up the U.S. Federal Reserve for an interest rate cut in September.
Read more »
US inflation slowed again in July, clearing the way for the Fed to begin cutting ratesWASHINGTON (AP) — Year-over-year inflation reached its lowest level in more than three years in July, the latest sign that the worst price spike in four decades is fading and setting up the Federal Reserve for an interest rate cut in September.
Read more »