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Wednesday, 13 November, 2024

US Fed official says one or two more rate cuts 'likely' this year

Express Desk
  11 Oct 2024, 03:27

 

The US Federal Reserve is likely to make one or two more rate cuts this year as it recalibrates policy to focus on the labour market, a senior bank official said Wednesday.

Fed policymakers voted 11-to-1 in favour of cutting the bank's key lending rate by half a percentage point last month, bringing the bank's key lending rate down from a 23-year high.

Speaking in the US state of Idaho on Wednesday, San Francisco Fed President Mary Daly said she had backed a larger cut last month to "recalibrate" monetary policy.

Daly was among the vast majority of members on the Fed's rate-setting committee to vote for the bigger rate cut, which lowered the US central bank's key lending rate to between 4.75 and 5.00 per cent.

"We were patient. We saw that the things we were marching towards have started to evolve," she said. "And we adjust 50 basis points to get policy right-sized for the economy we have, and the one we expect to evolve going forward."

Alongside the large cut, policymakers also published updated economic forecasts in which they pencilled in an additional 50 basis points of cuts over the two remaining meetings this year.

"I think that two more cuts this year, or one more cut this year, really spans the range of what is likely in my mind, given my projection for the economy," Daly said.

But she cautioned that the Fed was "data-dependent," and policy would continue to be guided by the incoming data on inflation and the health of the labor market.

Comments

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Interim Govt Reduces Capital Gains Tax to 15% in Bid to Stimulate Stock Market
Bangladesh Sees 21% Surge in Inward Remittances for October

US Fed official says one or two more rate cuts 'likely' this year

Express Desk
  11 Oct 2024, 03:27

 

The US Federal Reserve is likely to make one or two more rate cuts this year as it recalibrates policy to focus on the labour market, a senior bank official said Wednesday.

Fed policymakers voted 11-to-1 in favour of cutting the bank's key lending rate by half a percentage point last month, bringing the bank's key lending rate down from a 23-year high.

Speaking in the US state of Idaho on Wednesday, San Francisco Fed President Mary Daly said she had backed a larger cut last month to "recalibrate" monetary policy.

Daly was among the vast majority of members on the Fed's rate-setting committee to vote for the bigger rate cut, which lowered the US central bank's key lending rate to between 4.75 and 5.00 per cent.

"We were patient. We saw that the things we were marching towards have started to evolve," she said. "And we adjust 50 basis points to get policy right-sized for the economy we have, and the one we expect to evolve going forward."

Alongside the large cut, policymakers also published updated economic forecasts in which they pencilled in an additional 50 basis points of cuts over the two remaining meetings this year.

"I think that two more cuts this year, or one more cut this year, really spans the range of what is likely in my mind, given my projection for the economy," Daly said.

But she cautioned that the Fed was "data-dependent," and policy would continue to be guided by the incoming data on inflation and the health of the labor market.

Comments

Global Food Prices Hit 18-Month High, Reports FAO
Adani Power Reduces Bangladesh Supply by Over 60% Amid Payment Dispute
Forex Reserves Surpass $20 Billion Again After Two Months
Interim Govt Reduces Capital Gains Tax to 15% in Bid to Stimulate Stock Market
Bangladesh Sees 21% Surge in Inward Remittances for October