here<\/a>. <\/p>\nPowell\u2019s sentiments echoed those expressed at a news conference earlier in the week, following the Fed\u2019s decision to maintain its key interest rate at about 5.4%, the highest level in 22 years. The Fed\u2019s aggressive series of 11 rate hikes since March 2022 aimed to counter inflation, making loans more expensive for consumers and businesses.<\/p>\n
Regarding the timing of the rate cut, Powell suggested that the Fed\u2019s upcoming meeting in March might be premature. Most economists anticipate the first cut to occur in May or June. Powell highlighted that nearly all 19 members of the Fed\u2019s policy-setting committee concur that reductions in the central bank\u2019s key rate are warranted this year, aiming to lower borrowing costs for mortgages, auto loans, and credit cards.<\/p>\n
In December, Fed officials projected three rate cuts in 2024, aiming to reduce the benchmark rate to approximately 4.6% by year-end. Powell affirmed that this forecast still reflects policymakers\u2019 perspectives. Inflation, measured by the Fed\u2019s preferred gauge, fell to 2.6% in December compared to the previous year. In the latter half of 2023, inflation held steady at 2%, aligning with the Fed\u2019s target level.<\/p>\n
Powell attributed the inflation surge of 2021-2022 to pandemic-related disruptions, including a shift in spending patterns and supply chain interruptions. Acknowledging the Fed\u2019s misjudgment of inflation\u2019s duration, Powell admitted that earlier policy tightening might have been more effective in curbing inflation.<\/p>\n
At a news conference, Powell emphasized the need for further evidence that inflation is under control before implementing rate cuts. Despite acknowledging the economy\u2019s strength, he emphasized the importance of continued monitoring and prudent decision-making.<\/p>\n
Other Fed officials, like Michelle Bowman, expressed caution about rate cuts, particularly after a government report unexpectedly showed significant job growth in December. Bowman suggested that rate cuts should be considered only when inflation is demonstrably in check.<\/p>\n<\/div>\n
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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Federal Reserve Chair Jerome Powell stated in an interview aired Sunday night that the Fed is set to reduce interest rates three times this year, potentially starting as soon as May. Speaking on the CBS News program \u201c60 Minutes,\u201d Powell affirmed the strength of the nation\u2019s job market and economy, dispelling concerns of an imminent […]<\/p>\n","protected":false},"author":1,"featured_media":8473,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[]},"categories":[43],"tags":[],"_links":{"self":[{"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/posts\/8472"}],"collection":[{"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/comments?post=8472"}],"version-history":[{"count":0,"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/posts\/8472\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/media\/8473"}],"wp:attachment":[{"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/media?parent=8472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/categories?post=8472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cccfornews.com\/index.php\/wp-json\/wp\/v2\/tags?post=8472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}