Fed policymakers signal rate cuts ahead, but not because of market rout
-Federal Reserve policymakers are increasingly confident that inflation is cooling enough to allow interest-rate cuts ahead, and they will take their cues on the size and timing of those rate cuts not from stock-market turmoil but from the economic data.
"It's hard to make the case that something has just happened that is monumental on the equity side," Richmond Federal Reserve Bank President Thomas Barkin said on Thursday, noting major U.S. stock-market indices are still up from the start of the year. "I think you've got some time in a healthy economy to figure out whether this is an economy that's gently moving into a normalizing state that will allow you to, in a steady deliberate way, normalize rates or ... is this one where you really do have to lean into it."
On that score, he said, recent"encouraging" data showing inflation around 2.5% gives him more confidence inflation is headed to the Fed's 2% goal. "With the tremendous shocks that the economy has endured so far this decade, I would not want to assume any particular path or endpoint for the policy rate," he said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed's Dudley now calling for Fed rate cut next week amid recession concernsFed's Dudley now calling for Fed rate cut next week amid recession concerns
Read more »
Fed's Goolsbee: If economy deteriorates, Fed will fix itIn an interview with CNBC on Monday, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted that there is a lot going on in the world, which makes things more complicated for them, per Reuters.
Read more »
Chicago Fed President Goolsbee says if economy deteriorates, Fed will 'fix it'Chicago Federal Reserve President Austan Goolsbee spoke Monday morning on CNBC's 'Squawk Box' program.
Read more »
Slower growth ahead amid election, geopolitical uncertainty: Fed's Beige BookSlower growth ahead amid election, geopolitical uncertainty: Fed's Beige Book
Read more »
Markets are getting ahead of the Fed: BofAMarkets are getting ahead of the Fed: BofA
Read more »
Dollar steadies after Fed-inspired losses; sterling weak ahead of BOEDollar steadies after Fed-inspired losses; sterling weak ahead of BOE
Read more »