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6/29/2025, 5:57:54 PM
Fed official sends strong message on interest rate cuts
>Federal Reserve Board Chair Jerome Powell defended keeping the Federal Funds Rate steady in June per the Fed’s dual mandate: prudent monetary policy regulating the money supply that keeps inflation and unemployment relatively low and GDP happily growing along.
>Powell describes the economy as solid but that a “wait-and-see” forecast is needed until the full impact of the expected tariff prices passes through inflation and employment numbers over the next three months.
>While inflation has continued slowly trending toward the 2 percent target and activity has held up, the labor market has also cooled gently, with the unemployment rate holding at 4.2 percent and unemployment claims not showing a rapid acceleration, Kashkari said.
>“If we were to cut in September and then the effects of tariffs showed up this fall, I believe we should not be on a preset easing course,’’ he said, adding that if the data called for it, “we could hold the policy rate at the new level until we gained greater confidence that inflation was headed back to our target.”
>President Trump repeated on June 27 that he wanted the Fed to cut the fund rate down to 1% when it meets in late July.
https://www.thestreet.com/fed/fed-official-sends-strong-message-on-interest-rate-cuts
>Federal Reserve Board Chair Jerome Powell defended keeping the Federal Funds Rate steady in June per the Fed’s dual mandate: prudent monetary policy regulating the money supply that keeps inflation and unemployment relatively low and GDP happily growing along.
>Powell describes the economy as solid but that a “wait-and-see” forecast is needed until the full impact of the expected tariff prices passes through inflation and employment numbers over the next three months.
>While inflation has continued slowly trending toward the 2 percent target and activity has held up, the labor market has also cooled gently, with the unemployment rate holding at 4.2 percent and unemployment claims not showing a rapid acceleration, Kashkari said.
>“If we were to cut in September and then the effects of tariffs showed up this fall, I believe we should not be on a preset easing course,’’ he said, adding that if the data called for it, “we could hold the policy rate at the new level until we gained greater confidence that inflation was headed back to our target.”
>President Trump repeated on June 27 that he wanted the Fed to cut the fund rate down to 1% when it meets in late July.
https://www.thestreet.com/fed/fed-official-sends-strong-message-on-interest-rate-cuts
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