"It's time to adjust policy," CNBC quoted Mr. Powell as saying, adding: "The direction is clear, the timing and pace of rate cuts will depend on the data, the economic outlook and the balance of risks."
Inflation rate in the US is expected to gradually reach 2%
From March 2022 to July 2023, to deal with rising inflation, the Fed has carried out a series of 11 strong interest rate hikes. However, Mr. Powell said that there has been progress in controlling inflation and the Fed can now shift its focus to another aspect of its dual mandate, namely ensuring economic growth and creating more jobs. The interest rate cut was announced in the context of the inflation rate gradually returning to the Fed's 2% target. Accordingly, the inflation rate is currently at around 2.5%, significantly lower than the 3.2% rate a year ago and much lower than the peak of over 7% in June 2022.
Inflation cools in the US, paving the way for the Fed to cut interest rates
As soon as the Fed Chairman spoke, the US stock market rose, while Treasury yields fell sharply. Investors predict that the Fed will cut the base interest rate by at least 0.25 percentage points in September.
Source: https://thanhnien.vn/fed-sap-giam-lai-suat-co-ban-185240825181837875.htm
Comment (0)