According to Odaily, US banks have expressed concerns over potential inflation risks due to robust spending in the service sector, a tight labor market, and fiscal uncertainty. Despite the PCE inflation index gradually nearing its target, the resilience of US economic growth and a positive output gap make any monetary easing seem premature. This supports the view that the easing cycle may begin in December.
The impact and uncertainty surrounding the US elections could be another reason why the US may not want to lower interest rates prematurely. The US banking sector's perspective on the economic situation provides a crucial insight into the potential future of the country's financial landscape. The concerns raised about inflation risks and the reluctance to lower interest rates prematurely highlight the challenges faced by the US economy. The potential start of an easing cycle in December could signal a shift in monetary policy, which will have significant implications for the US and global economies.