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The latest forecast of the "Federal Reserve's megaphone": the Federal Reserve's interest rate cut is finally in sight

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2024-07-28 20:38:03
On July 28th, the latest article by "Fed Messenger" Nick Timiraos said that < b > although Fed officials are unlikely to cut interest rates next week, inflation and labor market developments should give officials the signal to cut rates at the September meeting. Powell, who prefers to act earlier, has been weighing the risks of cutting rates too early and waiting too long, an issue that will be addressed at next week's meeting. Officials hope to have more evidence that inflation is indeed cooling before crossing the threshold for rate cuts. Still, < b > officials are increasingly concerned that waiting too long will lead to a soft landing bubble. The Fed's readiness to cut rates reflects three factors: positive inflation, a cooling job market, and a changing calculus about the twin risks of allowing inflation to remain too high and creating unnecessary economic weakness.