Cleveland Fed President Loretta Mester projects three rate cuts by end of 2024 will be a close call
Fed Chair Jerome Powell suggests rate cuts could be delayed due to stubborn inflation readings
Fed officials expressing doubts about need for immediate interest rate cuts
Inflation remains a concern for many Fed officials, with inflation above 2% target for several months and progress in lowering it coming to a standstill
Latest data from Fed's April Beige Book reveals mixed outlooks on inflation, with some expressing concerns over resurgence in high prices
New York Fed President John Williams and Atlanta Fed President Raphael Bostic don't see urgency for rate cuts
New York Fed President John Williams indicates another rate hike may be necessary if data indicates higher interest rates are needed
Williams expects monetary policy to remain in good place, Bostic projects one cut towards end of 2024
The Federal Reserve is facing increasing pressure to cut interest rates, but some officials are expressing doubts about the need for immediate action. New York Fed President John Williams and Atlanta Fed President Raphael Bostic both indicated that they don't see any urgency to reduce rates at this time.
Williams stated during a conference in Washington that monetary policy is currently in a good place and he doesn't feel the need to cut interest rates. Bostic, on the other hand, expects one rate cut towards the end of 2024 and didn't change his outlook on Thursday.
Despite these comments, inflation remains a concern for many Fed officials. Inflation has been above the Fed's 2% target for several months and some are worried that progress in lowering it has come to a standstill. Cleveland Fed President Loretta Mester projects that achieving the projected three rate cuts by the end of 2024 will be a close call.
Fed Chair Jerome Powell also suggested earlier in the week that rate cuts could be delayed due to stubborn inflation readings. The latest data from the Fed's April Beige Book revealed that central bankers had mixed outlooks on inflation, with some expressing concerns over a resurgence in high prices.
Despite these concerns, not all officials are on board with delaying rate cuts. New York Fed President John Williams indicated that another rate hike may be necessary if data indicates higher interest rates are needed to achieve the Fed's goals.
The bond market reacted negatively to Williams' comments, with US bond yields climbing as a result.
Are the comments from Williams and Bostic representative of the overall sentiment among Fed officials?
Is inflation truly a concern for most Fed officials, or is it just a few voices?
Williams' comment about another rate hike being necessary if data indicates higher interest rates needed - is this an accurate reflection of the current situation?
