Policymakers have said they should start cutting interest rates before inflation fully returns
WASHINGTON – The Federal Reserve is expected to hold interest rates steady at a two-day policy meeting this week but open the door to interest rate cuts as soon as September by acknowledging inflation has edged nearer to the US central bank's 2% target.
Combined with a broader sense that price pressures are easing, that data may be enough for Fed officials to change their description of inflation as "elevated" in next week's policy statement, and note rising confidence that the pace of price increases will return to 2%. to their target, and if upcoming data stays in line with recent months they may be running out of time.
The Fed lifted its benchmark interest rate to slow the economy after inflation surged, and has held it steady in the current 5.25%-to-5.50% range since last July, making the current run of tight monetary policy among the longest in recent decades. "They have had encouraging inflation data ... Clearly the economy is slowing. The balance of risks is different than it was four months ago. Full stop," said Nathan Sheets, global chief economist at Citi. "It feels like they want to be a little more certain, so signal in July and cut in September."The US central bank will release its latest policy statement at 2 pm EDT on Wednesday, and Fed Chair Jerome Powell will hold a press conference half an hour later.
پاکستان تازہ ترین خبریں, پاکستان عنوانات
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