Top-level FED Executive Barkin made important statements about interest rates! "Are Interest Rate Cuts Over, Will They Continue?"

As it is known, FED has cut interest rates for three consecutive months in the interest rate reduction cycle it started in September.

The FED, which made a 50 bp reduction in September and 25 bp reductions in November and December, kept interest rates unchanged in January and took a break from the interest rate reduction cycle.

As the question of whether interest rate cuts are over comes up, Richmond FED President Thomas Barkin said in an interview that the FED is still inclined to lower interest rates this year.

Speaking to Bloomberg, Barkin said that although the Fed is likely to keep interest rates unchanged in January, it is inclined to make cuts and currently sees no signs of the economy overheating.

Barkin, who said he still thinks that the policy rate is moderately restrictive, expressed that the Fed needs more time to understand where the US economy and inflation are heading in the increasingly uncertain environment related to President Donald Trump's policies.

It is difficult to know the impact of customs duties and which tariffs will be imposed in the coming period.

The uncertainty extends beyond tariffs to migration, regulations, and other issues.

Many of Trump's policies are increasing uncertainty in the economy.

I predict that consumer spending will increase in 2025, while investments will decrease.

I expect the 12-month inflation figures to fall nicely.

I am in favor of interest rate cuts again this year.

No policy move removes from the table, but interest rate hikes require an overheating economy.

I see no signs of overheating in the US economy.

Prejudice is reacting according to what you see.

I still think that the political interest rate is reasonably restrictive.

We have recalibrated towards a more sensible place according to the current state of the economy.