On Monday, Federal Reserve Chairman Powell "said hawkishly" at the National Association for Business Economics that the Fed is not in a hurry to cut interest rates quickly, dampening market expectations of a large rate cut. He also said that if the economy performs as expected, there will be two more rate cuts this year, a total of 50 basis points, which is lower than market expectations.
I feel that this is not a committee that is in a hurry to cut interest rates quickly. If the economy performs as expected, that means there will be two more rate cuts this year for a total of 50 basis points (lower than market expectations). Looking ahead, if the US economy develops roughly as expected, policy will move to a more neutral stance over time. The Fed "is not taking any preset path." Risks are two-way and we will continue to make decisions at each meeting.
Talking about the most stubborn housing cost in US inflation, Powell said that this data will eventually cool down, housing service inflation continues to decline but slowly, and the growth rate of new tenant rents is still low. As long as this situation continues, housing service inflation will continue to decline.
The New Fed News Agency commented that the Fed currently sees no reason to cut interest rates as much as it did at the September meeting