- Analytics
- News and Tools
- Market News
- Fed's Powell and Mester: Rate cuts likely this year, but inflation remains a risk
Fed's Powell and Mester: Rate cuts likely this year, but inflation remains a risk
Appearances from multiple Federal Reserve (Fed) policymakers crossed the newswires on Thursday. Fed Chairman Jerome Powell added to earlier comments while testifying before the US Senate Banking Committee, and Cleveland Fed President Loretta Mester struck similar chords while speaking at the Virtual European Economics and Financial Center.
Key highlights:
- Powell:
- Waiting to be more confident, we are not far from it.
- Expects bank failures from commercial real estate, but not any big banks. Small and medium-sized banks have biggest exposure.
- Believes Fed is in the right place on policy.
- Could see a case for shortening maturity of Fed holdings.
- Expects food inflation to continue flattening.
- Mester:
- Inflation may prove persistent this year.
- If the economy meets forecasts, rate cuts would be likely later this year.
- The biggest mistake would be premature Fed rate cuts.
- Fed has the luxury of holding steady while taking in more data.
- Expects Fed rate reduction to be very gradual.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
