Two senior officials at the US Federal Reserve have expressed openness to the possibility of further interest rate cuts in the coming period, but warned of the need to proceed cautiously to avoid losing control of inflation.
Alberto Musallam, president of the Federal Reserve Bank of St. Louis, stated that monetary policy remains between neutral and restrictive, emphasizing that any future interest rate cuts must be done cautiously because the room for easing is limited.
In the same context, John Williams, president of the Federal Reserve Bank of New York, pointed out that monetary policy remains restrictive and is gradually putting pressure on inflation, noting that risks to the labor market have increased compared to the past, while upside risks to inflation have declined.
These statements come after the Fed’s recent decision to cut interest rates by 25 basis points to settle in the 4.00%-4.25% range, reflecting the central bank’s approach to balancing price stability with support for the labor market and the economy.
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