Federal Reserve Bank of Atlanta President Raphael Bostic said on Monday that he’s undecided on whether an interest-rate cut is needed in the December meeting, but still believes Fed officials should continue lowering rates over the coming months, per Bloomberg.
Key quotes “The risks to achieving the committee’s dual mandates of maximum employment and price stability have shifted such that they are roughly in balance, so we likewise should begin shifting monetary policy toward a stance that neither stimulates nor restrains economic activity,” “I’m keeping my options open” over whether he will support a rate reduction when officials gather in Washington Dec. 17-18.
This results in a stronger US Dollar as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. How often does the Fed hold monetary policy meetings? The Federal Reserve holds eight policy meetings a year, where the Federal Open Market Committee assesses economic conditions and makes monetary policy decisions.
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