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On the 22nd, Vice Chairman of the Federal Reserve Board (Fed) Jefferson stated that if the economy progresses generally as expected, “it is highly likely that it will be appropriate to begin easing tightening policy by the end of this year.” . Photographed in June 2022 (2024 Reuters/Sarah Silbiger)
WASHINGTON (Reuters) – Federal Reserve Vice Chairman J.D. Jefferson said on the 22nd that if the economy progresses broadly as expected, “it is likely that it will be appropriate to begin easing tightening policy by the end of the year.” “It’s huge,” he said.
According to estimates by Federal Reserve staff, the personal consumption expenditure (PCE) price index, an important indicator of prices, grew 2.4% year-on-year as of January. It said the results signaled a “significant” continuation of the slowdown in inflation and was “cautiously optimistic about progress toward returning inflation to 2%.”
At the same time, as risks to the outlook, he cited the possibility that strong consumer spending could “stagnate inflation (the process of slowing)” and the possibility that external shocks could push up inflation.
The Fed also said it would consider a wide range of economic indicators, rather than focusing on a single indicator, to gain confidence in when to cut interest rates. “We don’t look at one indicator and decide whether now is the time to start (cutting rates). We need a body of evidence on macroeconomic performance and then we consider whether now is the time. ”.
“We’re looking at economic data holistically,” he said, adding, “There’s not necessarily one thing we need to look at before considering a rate cut. Are we seeing inflation sustainably at our target level? “We hope to see evidence that they are on their way.”
There was no mention of when the Fed would start cutting interest rates.
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2024-02-22 18:22:00
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