{"id":15242,"date":"2024-07-16T13:48:09","date_gmt":"2024-07-16T10:48:09","guid":{"rendered":"https:\/\/forklog.com\/en\/fed-chairs-remarks-increase-odds-of-september-rate-cut\/"},"modified":"2024-07-16T13:48:09","modified_gmt":"2024-07-16T10:48:09","slug":"fed-chairs-remarks-increase-odds-of-september-rate-cut","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/fed-chairs-remarks-increase-odds-of-september-rate-cut\/","title":{"rendered":"Fed Chair&#8217;s Remarks Increase Odds of September Rate Cut"},"content":{"rendered":"<p>The Federal Reserve will not wait for inflation to drop to 2% before beginning to lower interest rates, warned Jerome Powell, Chairman of the <span data-descr=\"Federal Reserve System of the USA\" class=\"old_tooltip\">Fed<\/span>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Federal Reserve Chairman Powell said on Monday that the Fed will not wait until inflation falls to 2% before starting to cut interest rates. The Fed needs more evidence of falling inflation to ensure the correctness of policy adjustments. The recent slowdown in inflation and\u2026<\/p>\n<p>\u2014 Wu Blockchain (@WuBlockchain) <a href=\"https:\/\/twitter.com\/WuBlockchain\/status\/1813015669010800748?ref_src=twsrc%5Etfw\">July 16, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to the official, the confidence of monetary authorities that the annual growth of consumer prices is moving towards the target of 2% has increased recently.<\/p>\n<p>Powell reiterated that additional evidence is needed to confirm that high inflation has been overcome before they move to ease policy.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;What boosts this confidence is the good data on <span data-descr=\"consumer price index\" class=\"old_tooltip\">CPI<\/span>. And lately, we are getting some of it,&#8221;<\/em> he explained.<\/p>\n<\/blockquote>\n<p>As of June, annual inflation in the US slowed from 3.3% to 3%.<\/p>\n<p>Prices for services excluding housing and energy fell by 0.05% after a 0.04% decline the previous month. The Fed noted the importance of this metric in analyzing the inflation trajectory. Also, the rent indicator, important for monetary authorities, increased by 0.3% \u2014 the lowest growth since August 2021.<\/p>\n<p>Powell also emphasized potential risks to employment dynamics. The official <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-07-15\/powell-says-recent-data-raise-confidence-inflation-on-path-to-2\">described<\/a> the labor market as &#8220;no longer overheated&#8221; and warned that &#8220;unexpected weakening&#8221; could prompt a central bank response.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Now that inflation has decreased and the employment trend has softened, we will consider both mandates. They are in much better balance,&#8221;<\/em> he stated.<\/p>\n<\/blockquote>\n<p>Separately, Powell stated that a &#8220;<a href=\"https:\/\/ru.wikipedia.org\/wiki\/%D0%96%D1%91%D1%81%D1%82%D0%BA%D0%B0%D1%8F_%D0%BF%D0%BE%D1%81%D0%B0%D0%B4%D0%BA%D0%B0\">hard landing<\/a>&#8221; scenario &#8220;is not the most likely or even a likely scenario.&#8221;<\/p>\n<p>The Fed Chair&#8217;s remarks led to an increase in the probability of a key rate cut at the July meeting to 8.8% and an additional easing of 25 basis points in September to 14.2% from 8.1% the day before.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-1107.webp\" alt=\"1-1107\" class=\"wp-image-237051\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html?redirect=\/trading\/interest-rates\/countdown-to-fomc.html\">CME Fed Watch<\/a>.<\/figcaption><\/figure>\n<p>Earlier, Citi forecasted the start of a Fed policy easing cycle.<\/p>\n<p>Previously, 10x Research reported expectations of Bitcoin returning to a growth trajectory amid easing inflation and the Fed approaching the start of rate cuts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve will not wait for inflation to drop to 2% before beginning to lower interest rates, warned Jerome Powell, Chairman of the Fed. Federal Reserve Chairman Powell said on Monday that the Fed will not wait until inflation falls to 2% before starting to cut interest rates. The Fed needs more evidence of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15241,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1249,1224],"class_list":["post-15242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-federal-reserve-system","tag-macroeconomics"],"aioseo_notices":[],"amp_enabled":true,"views":"7","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=15242"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/15241"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=15242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=15242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=15242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}