At the recent Jackson Hole Central Bank Symposium, Federal Reserve Chairperson Jerome Powell hinted that the priority had shifted from fighting inflation to protecting jobs, saying further cooling in the labor market would be "unwelcome". He did not use the word "gradual" to describe the pace of future rate cuts, which some investors see as opening the door to rapid rate cuts. Traders now expect the Fed to cut rates by a full percentage point by the end of the year, meaning a 50 basis point cut ...
Officials at three major central banks signalled on Friday that they would firmly lower or continue to lower interest rates in the coming months, signalling a surge in high borrowing as the global economy shrugs off post-pandemic inflation controls.
Mr. Schmid, the president of the Kansas Fed, signalled he was not ready to support a rate cut because inflation was above target and the labour market remained healthy, albeit somewhat cooler. In remarks to the Kansas Bankers Association, Mr. Schmid said the recent drop in inflation was "encouraging" and that more reports of low price pressures would increase his view on inflation.