2024-07-10 00:04:33
Economy
Finance

Federal Reserve's Powell Signals Potential Rate Cuts Amid Economic Concerns

Federal Reserve Chair Jerome Powell has cautioned Congress about the risks of maintaining high interest rates for too long, highlighting the threat to economic growth and job opportunities. Powell's focus on balancing policy to prevent weakening economic activity and employment comes as the US job market cools and inflation remains elevated.

Recent data indicating slowing job growth and persistently high prices has led to speculation that the Fed may be nearing a decision to cut interest rates. Analysts are now predicting the possibility of up to three rate cuts this year, driven by rising unemployment and falling inflation, urging the Fed to act sooner rather than later to address economic strains.

As the unemployment rate in the US nears a key recession indicator, the pressure on the Federal Reserve to cut rates increases, with odds of a September rate cut standing at 72%. Powell's emphasis on the need for 'more good data' before a rate cut underscores the central bank's cautious approach amid cooling inflation pressures and weakening job market indicators.

The Street
9. Juli 2024 um 23:08

June jobs report bolsters bets on an autumn Fed interest rate cut TheStreet Daily Newsletter

Economy
Finance
Politics
The U.S. economy added 206,000 new jobs in June, down from the revised 218,000 in May. Wages grew 3.9% annually, the slowest pace in three years. The unemployment rate edged higher to 4.1%, ending a 28-month streak of sub-4% readings. The data suggests cooling inflation pressures, bolstering bets on a Fed interest rate cut in the autumn.
The Street
11. Juli 2024 um 22:49

Suddenly, there's talk of 3 rate cuts this year TheStreet Daily Newsletter

Economy
Finance
Analysts are now predicting that the Federal Reserve may cut interest rates up to three times this year, rather than the previously expected one or two cuts in 2024. This shift is driven by factors like rising unemployment, falling inflation, and increasing economic strains. The Fed usually makes dramatic rate cuts when a recession is unfolding, but has done so in the past even when a recession was not imminent. The analysts argue the Fed should get ahead of the problem and cut rates sooner ra..
Yahoo News
9. Juli 2024 um 10:00

The unemployment rate is just 0.1% from causing a major headache for the Fed: Morning Brief

Economy
Finance
The unemployment rate in the US is just 0.1% away from triggering a well-respected recession indicator called the Sahm Rule, which could put pressure on the Federal Reserve to cut interest rates. The Fed is closely watching economic data, including the upcoming Consumer Price Index inflation report, as it tries to balance its twin mandates of maximum employment and stable prices. While the Fed is expected to hold steady at its July meeting, the odds of a September rate cut have been increasing,..
New York Times - Economy
10. Juli 2024 um 08:37

Powell Welcomes Cooling Inflation but Wants ‘More Good Data’ Before Rate Cut

Economy
Politics
Finance
Federal Reserve Chair Jerome Powell indicated that recent inflation data has given the central bank more confidence that price increases are returning to normal. He stated that continued progress along these lines would help pave the way for a central bank rate cut, but emphasized the need for 'more good data' before such a move. Powell avoided specifying a timeline for a potential rate cut, but did little to push back on expectations that a reduction could come as soon as September.
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