The Fed could implement further cuts before the end of the year
According to the Fed minutes, there is a willingness to continue lowering rates, but with caution regarding the CPI and inflation rates in the United States
The data in the Fed minutes in the United States show the institution’s willingness to make further interest rate cuts before the end of the year.
However, “the governing body emphasized that the impact of tariffs on prices is still uncertain and that high levels of inflation could be more persistent than expected.”
During the last meeting of the Federal Open Market Committee (FOMC) members of the United States Federal Reserve (Fed), on September 17, they indicated their willingness to lower interest rates again this year, although with some fear that inflation could pick up.
The majority of participants in the meeting indicated that “it would be appropriate to further ease policy during the remainder of the year,” without neglecting the upside risks to their inflation outlook.
In the committee vote, those responsible for national monetary policy voted 11 to 1 for a 25 basis point reduction in interest rates “and leaving them in the range of 4% to 4.25%, the first cut in 2025.”
The results of last month’s meeting on macroeconomic projections left the path is open to “two more quarter-point cuts by the end of the year within their baseline scenario. However, six of the 19 participants projected one cut or none at all.”
M.Pino
Source: elconfidencial
(Reference image source: Joshua Hoehne on Unsplash)
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