The Federal Reserve (Fed) of the United States has cut interest rates for the first time in over a year, initiating a new cycle of reductions. Further measures aimed at stabilizing the economy are expected.
Initial Rate Cuts
Last week, the Fed began its rate-cutting cycle for the first time in over a year, reducing rates by 50 basis points. This decision was driven by significant progress in reducing inflation and the risk of rising unemployment.
Neel Kashkari's Expectations
Minneapolis Fed President Neel Kashkari stated that he expects interest rates to reach 4.4% by the end of 2024 and 3.4% by 2025.
Statements from Raphael Bostic
Atlanta Fed President Raphael Bostic also made important statements. He voted on the FOMC this year and noted that he expects aggressive rate cuts to achieve a neutral rate.
The Fed is taking active steps to normalize monetary policy, guided by the latest data on inflation and the labor market. More gradual rate cuts are likely, unless significant changes occur in economic indicators.
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