Federal Reserve sends hawkish signals again: Officials say rate cuts are not advisable before inflation improves, and even rate hikes are not ruled out.

robot
Abstract generation in progress
ME News, May 20 (UTC+8), BlockBeats reported that Anna Paulson, President of the Federal Reserve Bank of Philadelphia, said at the Atlanta Fed conference that she does not support a rate cut until inflation shows sustained improvement, emphasizing the need to maintain the current restrictive monetary policy stance. Paulson noted that the U.S. unemployment rate is stable and the labor market is generally balanced. Inflation was already elevated before the Middle East conflict pushed up energy prices. She believes keeping interest rates unchanged will help the Federal Reserve assess economic and inflation risks. Paulson stated that if the labor market remains stable, rate cuts should only be considered when inflation continues to improve. If economic growth exceeds potential or inflation risks increase, the Federal Reserve may consider raising interest rates. She also mentioned that rising energy prices are putting pressure on household consumption, with some households switching to lower-priced alternatives or relying on credit cards, but overall consumption remains resilient. In the market, as energy shocks and geopolitical uncertainty increase, U.S. Treasury yields have risen, strengthening expectations for prolonged high interest rates and even further tightening. Paulson said this adjustment in expectations is “healthy.” (Source: MLion)
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned