Minutes from the Federal Reserve’s July meeting indicate that the central bank remains open to further interest rate cuts. While no decision was made, participants generally agreed that the economy was slowing and that uncertainties surrounding trade and geopolitical tensions could warrant accommodative action. The minutes also noted that weak inflation remained a concern. The Fed has already cut rates twice this year, in July and September, and markets now widely expect another cut at the next meeting in October. However, the minutes suggest that the Fed may be willing to pause after that if the economy improves as expected.
Tag: Federal Reserve
Fed Chair Jerome Powell Says No Need to ‘Hurry’ to Cut Rates
Like a skilled conductor guiding an economic orchestra, Fed Chair Jerome Powell gestures with caution, urging patience amidst calls for a hasty rate cut. With a steady hand, he reminds the market that the symphony of monetary policy is not subject to the whims of passing trends. The tempo of the economy, he emphasizes, does not necessitate an abrupt shift in interest rates just yet. Powell’s reassuring leadership steadies investors, encouraging a measured approach as the symphony of financial markets unfolds.
How Trump’s Plans for Mass Deportations, Tariffs and Fed Could Affect the Economy
The potential impact on the U.S. economy from Trump administration policies remains uncertain. Some argue that the President’s proposals for mass deportations of undocumented immigrants, tariffs on imported goods, and deregulation of the financial sector could boost the economy in the short-term by increasing employment and stimulating investment. Others contend that these policies would ultimately have negative consequences for the economy by reducing the labor force, raising prices for consumers and businesses, and increasing the risk of financial instability. The long-term effects of these policies are difficult to predict with certainty at this time.
U.S. Inflation Ticks Up to 2.6% in October, as Fed Considers Rate Cut
The U.S. inflation rate ticked up in October, reaching 2.6% annually. This increase follows months of persistently low inflation below the Federal Reserve’s 2% target. The rise in inflation is attributed to rising costs for energy and food. As the Fed considers the possibility of an interest rate cut, the latest inflation data will be closely analyzed to assess its potential impact on future monetary policy decisions. While higher inflation may warrant a more hawkish approach, the Fed must also balance its efforts to encourage economic growth.
Trump wants you to believe that the US economy is doing terribly. It’s untrue
In his recent public address, ex-President Trump painted a bleak picture of the US economy, claiming it was in a state of decline. However, data from reputable sources such as the Bureau of Labor Statistics and the Department of Commerce contradict this narrative. The unemployment rate has fallen to 3.5%, the lowest level in 50 years. Additionally, GDP growth has been steady at around 2%, indicating a healthy and expanding economy. Therefore, while Trump may attempt to sow seeds of doubt, the evidence suggests that the US economy is far from the abyss he portrays.