Federal Reserve of the USA Leans Towards Neutral Policy Before Donald Trump's Term

user avatar

by Giorgi Kostiuk

2 years ago

Federal Reserve officials in the United States advocate for maintaining a neutral policy amidst anticipation of Donald Trump's administration.

Statements from Fed Officials

Fed Governor Michelle W. Bowman highlighted the importance of a cautious approach to rate changes ahead of the new administration's policies. Kansas City Federal Reserve President Jeff Schmid also noted that the current economic situation in the US does not necessitate either additional support or restrictions. The best course of action at the moment is a neutral policy.

I believe we are near the point where the economy needs neither restriction nor support, and that policy should be neutral.Jeff Schmid

Fed's Policy Priorities

Bowman expressed that being too aggressive in lowering rates may stoke excessive demand and potentially revive inflationary pressures. As they await clearer signals, the Fed aims for measured and deliberate actions.

Forecasted Rate Cuts

Bowman supported the December Fed policy of a 0.25% rate cut, part of the policy recalibration phase. However, further rate cuts in 2025 might be limited to two steps, raising some concerns in the market.

The Federal Reserve exercises caution in rate changes given the uncertainty before Trump's presidency. The Fed is expected to maintain a neutral policy until clearer economic signals arise.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Ledger Launches Atom: A Dedicated Device for Secure Digital Approvals

Ledger has launched Atom, a device designed to run everyday apps while ensuring secure approvals for sensitive digital activities.

user avatarKenji Takahashi

Uniswap Reports Record Revenue Driven by Robinhood Chain

Uniswap generated approximately $148.1 million in protocol revenue in September, with Robinhood Chain contributing about 53% of the total.

user avatarMaria Fernandez

Gopax Operator Streami Caught in Cybersecurity Investigation

The Financial Services Commission of South Korea has identified Streami, the operator of the cryptocurrency exchange Gopax, as one of the 16 financial firms affected by recent hacking incidents.

user avatarGustavo Mendoza

Regulatory Discussions on Stablecoin Yield and Banking Reserves

Regulatory discussions on stablecoin yield and banking reserves are ongoing in Washington, focusing on the implications for issuers and the requirement to maintain reserves in bank deposits.

user avatarMiguel Rodriguez

Binance Declares Shutdown of Mining Pool Services.

Binance will discontinue its mining pool and related services on November 10, 2026, requiring miners to redirect their machines.

user avatarRajesh Kumar

Banks Counter Stablecoin Growth with Higher Deposit Rates

A new working paper reveals that banks can slow the growth of stablecoins by increasing deposit rates.

user avatarLuis Flores

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.