The Federal Reserve Goolsbee said that the policy rate is now restrictive, and the policy is much less restrictive than before; the interest rate will drop a little, and the policy rate is still far from the neutral rate. It is expected that the Federal Reserve interest rate will be "moderately lowered" in 2025, and the path of interest rates will be determined by employment and price conditions. And said that the Federal Reserve interest rate may fall in 12-18 months.
So far, the rise of crypto-assets has not had much of a macro impact, but it could have a wealth effect, said Mr. Goolsby, the Fed. Cryptocurrencies are more speculative assets, but without obvious real-economy use cases, it is difficult to see what the real impact will be.
Federal Reserve Speaker Nick Timiraos wrote that Fed members discussed the possibility of slowing or pausing interest rate cuts at their meeting earlier this month if progress on reducing inflation stalled. According to Fed meeting notes released on Tuesday, officials believe that if the economy performs in line with their expectations, inflation will continue to decline steadily...