Central Bank Official Suggests Possible Rate Reduction as Soon as July.
Heck yeah, let's dive into the latest from the Federal Reserve! Ex-president Trump's nominee, Chris Waller, the Fed governor, declared on Friday that he doesn't anticipate tariffs causing a huge spike in inflation. So, what's the deal? Waller reckons the policymakers should start easing the interest rates as early as next month.
Waller chatted about it all in a CNBC interview, stating that he and his mates could potentially move in this direction as early as July, although whether the committee would actually go with it remains to be seen.
This chat comes hot on the heels of the Federal Open Market Committee voting to keep the key interest rate steady at their latest meeting, marking the fourth consecutive hold since the last cut in December.
Trump himself has been putting the heat on the Fed to lower interest rates, hoping it'll reduce borrowing costs on the eye-watering $36 trillion U.S. national debt.
But what's Waller's take? He reckons the Fed should lower the rates to steer clear of a potential slowdown in the labor market. If you're starting to worry about labor market issues, Waller suggests acting now instead of waiting until things really start going pear-shaped.
Whether Waller will manage to round up support for this stance is anyone's guess. It's worth noting that the FOMC voted unanimously to hold at their most recent meeting, with the benchmark federal funds rate locked in a target range of 4.25%-4.5%.
Now, here's a tidbit that might interest you. According to a dot plot of individual FOMC participants' interest-rate expectations for this year, seven of the 19 meeting participants foresee rates holding steady, while two expect only one cut. The remaining 10 anticipate two or three reductions, reflecting some uncertainty about where interest rates should head.
In other news, Walmart just agreed to cough up $10 million to settle a lawsuit over money transfer fraud, and shareholders are suing Apple, claiming the tech giant is overstating its AI progress. And, if you're curious about why Greenland doesn't want to become a major mining nation, well, you'll have to read up on that yourself, buddy!
The nominee for Fed governor, Chris Waller, anticipates a potential reduction in interest rates as early as July, with the aim of avoiding a potential slowdown in the labor market. Trump has voiced his desire for the Fed to lower interest rates to reduce borrowing costs on the $36 trillion U.S. national debt. Interestingly, a majority of FOMC participants anticipate two or three rate cuts this year, as seen in the dot plot of individual expectations. However, recent FOMC votes have maintained the key interest rate, and the committee's stance on future changes remains uncertain. In the realm of finance and business news, Walmart agreed to a $10 million settlement over money transfer fraud, while shareholders are suing Apple over alleged overstatements regarding AI progress. For comprehensive information on Greenland's stance on mining, more research is required.
