Fed Official Hint at Half-Point Rate Cut, Emphasizes Cautious Approach
Publication Time:2024-09-08 20:47:09
Currently, the Federal Reserve has entered its customary 'lull period'. Prior to this, two high-ranking officials expressed their positions on whether or not a rate cut would be necessary. They indicated that despite mixed employment data, there is still a potential for the Federal Reserve to take action in the next meeting by reducing interest rates by half a percentage point. However, they also emphasized the need for caution when considering any moves. Two officials, namely Federal Reserve Governor Waller and New York Fed Chair Williams, believe that given declining inflation and a weakening US labor market, multiple adjustments to interest rates may be necessary this year. Recent fluctuations in the Federal funds futures market suggest a higher likelihood of a 50 basis point rate cut by the Fed in the current month, although subsequent adjustments have been made. Nonetheless, traders generally expect the Fed to cut interest rates over one percentage point within the year, reflecting market expectations of stronger measures from the Fed in response to economic slowdown.
Fed
rate cut
Lull Period
Employment Report
Caution