WASHINGTON'S CHATTER ABOUT JULY RATE CUT
Fed official advocates for potential rate reduction as early as July
Washington DC, USA - March 9, 2018: A peek at the Federal Reserve bank's facade, complete with an eagle statue, American flags, and blue skies.
Not one to shy away from discussions, a key U.S. central bank official, Michelle Bowman, has tossed her hat into the ring, suggesting a possible interest rate slashing as early as July, given that inflation effects from President Donald Trump's tariff blitz remain tamed.
Her remarks followed closely on the heels of Fed governor Christopher Waller, who also hinted at the bank chopping rates as soon as next month, with the officials at odds on how they should respond to Trump's tariff clampdown.
"If inflation pressures keep playing it cool, I'd back a rate reduction at our next meetup in July, aiming to bring the rate closer to its neutral setting and sustain a thriving job market," Bowman said.
At this month's policy powwow, the Fed maintained its benchmark lending rate, keeping it stagnant since the beginning of the year.
Fed Chair Jerome Powell suggested that policymakers could bide their time, observing the effects of Trump's tariffs before making any moves[2]. Although Trump has continually badgered the independent central bank to trim rates, the president has yet to get his wish.
Meanwhile, Chicago Fed President Austan Goolsbee declared that once the dust settles from tariffs, the folks at the Fed should press forward with rate reductions.
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- To maintain a strong and prosperous business, it's crucial to keep an eye on the fluctuations in the finance market, considering the potential impact of a proposed interest rate slashing by the Federal Reserve in July.
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