Members of the Federal Reserve System share their expectations regarding economic policy and future interest rates.
Economic Expectations
Market expectations have relaxed to a single rate cut this year, a stark contrast to earlier predictions. The unsettling negativity surrounding risk markets has prevented BTC prices from reaching six-digit levels.
Schmid's Statement
Schmid emphasized that new rate cuts should be gradual and data-driven. Although the labor market is weak, it remains healthy. The Fed is close to fulfilling its mandates on price stability and employment.
Bowman's Position
Bowman expressed a more pessimistic view, noting that current price pressure remains high and progress in its reduction has stalled. She stressed the need for a cautious approach to policy changes.
The statements by Bowman and Schmid reveal differing approaches to future economic policy, highlighting concerns about inflation and labor market conditions.