2024-01-19 15:20:02
According to foreign media reports on Friday (19th), Chicago Fed President Austan Goolsbee said that the continued decline in inflation warrants discussion of interest rate cuts, although he did not give a time for the first rate cut by the Federal Reserve (Fed). , but his remarks hinted that he hopes policymakers will consider cutting interest rates as inflation declines to avoid excessive policy tightening.
Goolsby said in an interview with US financial media CNBC on Friday: “If we continue to make faster progress on inflation than expected, then you have to consider cutting interest rates when interest rates are at restrictive levels. As inflation cools , we will obviously evaluate responsiveness.”
He emphasized that there will be several data reports between now and March, encouraging market participants to pay more attention to economic data rather than the views of policymakers to evaluate the direction of interest rates.
“Fundamentally, interest rate policy is tied to economic data, and if there is clear evidence that inflation is on track to achieve our 2 percent target, we can reduce restrictions,” Goolsby said.
In an earlier interview, Goolsby emphasized the progress the central bank has made in fighting inflation over the past year, while reiterating that the U.S. economy is still achieving 2% inflation without triggering a recession.gold“On the road”.
In the market, investors predict that interest rates will be cut six times this year, with a 50% chance that the Fed will cut interest rates for the first time as early as March this year. However, central bank officials have been pouring cold water on the market in recent months.
Policymakers included three interest rate cuts in their forecasts released after December’s monetary policy. After the Fed kept interest rates unchanged at that meeting, the market expects that the monetary policy meeting on January 30-31 will also remain unchanged, keeping interest rates at a range of 5.25% to 5.5% for the fourth consecutive time.
Goolsby does not have a vote on the Federal Open Market Committee (FOMC) this year.
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