Stephen Miran, a Federal Reserve governor whose term ends at the end of January, said Thursday that he is looking for 150 basis points of interest-rate cuts this year to boost the U.S. labor market. Miran told Bloomberg Television's Surveillance program that Fed officials had room to further reduce rates given his view that underlying inflation was likely running at 2.3%. "I'm looking for about a point and a half of cuts. A lot of that is driven by my view of inflation," Miran said. "Underlying inflation is running within noise of our target, and that's a good indication of where overall...
The FOMC is expected to cut interest rates by 25 basis points with potential dissent, reflecting the tension between inflation risks and weakening employment. Federal Reserve Chairman Jerome Powell is likely to emphasize data-driven policymaking ahead of January, while the new dot chart may still underestimate the influence of the incoming Trump administration's policies, reports Rabobank Senior US Strategist Philip Marey. Powell is expected to downplay policy divisions. "We expect the FOMC to cut the federal funds rate by 25 basis points to its target range of 3.50–3.75% from 3.75–4.00%....
National Economic Council Director Kevin Hassett stated that the Federal Reserve should cut interest rates at its upcoming meeting next week and predicted a reduction of 25 basis points. In an interview on Fox News, Hassett was asked if he believed the Federal Open Market Committee would cut rates. "I think we should, and I think that we are likely to," Hassett said, referencing recent communications from Fed governors and regional presidents. "They now seem much more like they're leaning in the direction of a rate cut." His comments come as speculation grows about President Donald Trump's...
The Federal Reserve is expected to reduce interest rates by 25 basis points to a range of 3.5%-3.75% at next week's meeting, but Bank of America says Chair Jerome Powell faces the most divided committee in years. "We expect him to try to deliver a hawkish cut as a compromise," BofA strategists led by Mark Cabana said in a Thursday note. "We're skeptical about whether he will be able to pull this off. But for now, markets are giving him the benefit of the doubt," they added. Markets are still pricing only modest easing beyond December, expecting just 8 basis points of potential cuts in...
Treasury Secretary Scott Bessent said Wednesday he will push for a new rule requiring regional Federal Reserve chairpersons to live in their district for at least three years. The initiative is Bessent's latest push for a major overhaul of the US central bank—which he has repeatedly accused of mission drift and straying from its primary mandate of setting monetary policy. "I believe there is a disconnect now from the original framework" of the Fed, Bessent said during a discussion at a New York Times event. The US central bank, founded more than a century ago, established a board of...
Inflation in the United States continues to show signs of moderation. The latest data shows CPI inflation hovering around 3% annually, while PCE inflation the Federal Reserve's favorite indicator is hovering around 2.1–2.6%. This decline in inflation signals that price pressures in the US are beginning to ease after a period of high price increases post-pandemic. This directly impacts market expectations regarding the Fed's interest rate policy, as stable inflation opens the door to further monetary policy easing in the near future. However, the Fed remains cautious as core inflation remains...
Bank of Japan (BOJ) Governor Kazuo Ueda stated that achieving 2% inflation is getting closer, although real inflation remains low. Ueda emphasized that the BOJ will continue to raise interest rates...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...