“There is no need to rush a rate cut.”
Spring has fully arrived, or rather some days feel like summer days!
Hello, I’m Kohmikko, who wants to go flower viewing.
Now, from the news I saw today.
Below, a quote from Yahoo News
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Powell: There is no need to rush rate cuts — remains cautious
(Bloomberg): Federal Reserve Chair Jerome Powell reiterated that authorities are not rushing to cut rates. They want to wait for more evidence that inflation is easing.
On the 29th, he spoke at an event in San Francisco. In response to a moderator’s question, he said, “The fact that the U.S. economy is growing at a very solid pace and the labor market is extremely strong gives us more time to gain confidence that inflation will fall before we take the significant step of cutting rates.”
“There is no need to rush rate cuts,” the chair said.
Regarding the inflation data released that morning, he noted that it was “almost in line with our expectations,” and reiterated his view that rate cuts would be appropriate only once authorities are convinced that inflation is steadily moving toward the 2% target.
Inflation indicators that the Fed watches, growth slows from previous month—consumption recovers (3)
City Group economist Veronica Clark said, “The overall message hasn’t changed much and the February inflation data were in line with authorities’ expectations. They reflect the data that the authorities deem acceptable.”
“They’re in a mode of gaining a little more confidence and waiting for about two more months of data. The idea of a mid-year rate cut remains unchanged.”
Powell said about today’s inflation data, “Seeing data that aligns with expectations is a good thing,” but added that this latest data was not as favorable as last year.
Regarding future inflation, authorities expect it to continue to decline while navigating a “sometimes volatile road.”
He repeated his remarks from the post-FOMC press conference this month.
FOMC keeps expected rate cuts at three this year — 2025 forecast lowers (3)
In addition, Powell stated that he does not currently view a recession as highly likely, though he noted that if the labor market weakens more than expected, policy actions could be warranted.
Powell, Fed Chair, prepared to support the labor market — even if inflation remains elevated
This was the news.
How will this move affect America?
I still feel like strawberry picking is nice too, Kohmikko said.
(Dango over flowers)
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