Fed official: Rate cut is appropriate and necessary first step

DNVN - On September 23, Raphael Bostic, President of the US Federal Reserve (Fed) Atlanta branch, affirmed that cutting interest rates by 0.5 percentage points is "an appropriate and necessary first step", reflecting positive progress in controlling inflation in the world's number 1 economy .

According to Mr. Bostic, this decision received 11 out of 12 votes in favor from the Fed's monetary policy makers. This consensus comes from the significant progress in curbing inflation and balancing risks related to the "health" of the labor market, marking the right time to shift monetary policy when economic conditions are improving.

Mr. Bostic also expressed his support for a larger cut because inflation has been better than expected. He said the Fed’s decision puts the institution in a strong position whether inflation continues to fall toward its 2% target or not.

On September 18, the Fed decided to cut interest rates by 0.5 percentage points, bringing the interest rate to a range of 4.75% - 5.00% and starting a monetary policy easing cycle, in the context of gradually stabilizing inflation. This is the first time the Fed has cut interest rates since 2020.

Cao Thong

Source: https://doanhnghiepvn.vn/quoc-te/quan-chuc-fed-cat-giam-lai-suat-la-buoc-di-dau-tien-thich-hop-va-can-thiet/20240924082856073