Federal Reserve Holds Off on Lowering Benchmark Rate Amid Inflation Concerns

New York, United States United States of America
Earlier expectations that the central bank was planning multiple cuts before the end of the year seem less likely, as inflation is staying stubbornly higher and experts say it's keeping them on hold.
The Federal Reserve is in no rush to lower its benchmark rate.
The Fed has not cut rates since 2019, but some analysts predict a move in coming months to combat slowing economic growth.
Federal Reserve Holds Off on Lowering Benchmark Rate Amid Inflation Concerns

The Federal Reserve is in no rush to lower its benchmark rate. Earlier expectations that the central bank was planning multiple cuts before the end of the year seem less likely, as inflation is staying stubbornly higher and experts say it's keeping them on hold. The Fed has not cut rates since 2019, but some analysts predict a move in coming months to combat slowing economic growth.


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Confidence

80%

Doubts
  • It is not clear if there are any other factors that could be contributing to inflation besides stubbornly high prices.

Sources

75%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

The Fed is determined not to reduce interest rates too soon, experts say — a mistake the central bank has made in the past

CNBC News Jessica Dickler Wednesday, 10 April 2024 14:37
  • Unique Points
    • The Federal Reserve is in no rush to lower its benchmark rate.
    • Earlier expectations that the central bank was planning multiple cuts before the end of the year seem less likely.
    • Inflation is staying stubbornly higher, which experts say is likely keeping the Fed on the sidelines.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (50%)
    The article is deceptive in several ways. Firstly, it states that the Federal Reserve is 'in no rush to lower its benchmark rate', but then goes on to say that earlier expectations of multiple cuts before the end of the year seem less likely due to higher-than-expected inflation data. This contradicts itself and creates a false impression about the Fed's intentions. Secondly, it quotes Mark Higgins stating that 'The risks of allowing inflation to persist still far outweighs the risk of triggering a recession', but then goes on to say that this is one of the major factors that allowed inflation to become entrenched in the 1970s. This creates a false impression about Higgins' statement and contradicts itself. Lastly, it quotes Steven Eisman stating that 'Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation', but then goes on to say that this is not the case as reducing interest rates now would only lead to higher inflation and require even tighter policy later. This creates a false impression about Eisman's statement and contradicts itself.
    • Earlier expectations that the central bank was planning multiple cuts before the end of the year seem less likely
    • Mark Higgins stated that 'The risks of allowing inflation to persist still far outweighs the risk of triggering a recession'
    • Steven Eisman stated that 'Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation'
    • The Federal Reserve is in no rush to lower its benchmark rate
  • Fallacies (85%)
    The article contains several fallacies. The first is an appeal to authority when it quotes Mark Higgins stating that the risks of allowing inflation to persist still far outweighs the risk of triggering a recession. This statement is not supported by any evidence and should be taken with a grain of salt.
    • Mark Higgins stated that, 'The risks of allowing inflation to persist still far outweighs the risk of triggering a recession.'
    • Higgins also said, 'This time around, the central bank is likely to remain extremely cautious, even if that means holding rates higher for longer.'
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (50%)
    Jessica Dickler has a conflict of interest on the topics of Fed, interest rates, inflation, recession and banking crisis as she is an employee of CNBC which is owned by Comcast. Additionally Mark Higgins who was quoted in the article also works for Index Fund Advisors.
    • Jessica Dickler writes for CNBC which is owned by Comcast.
    • Author Conflicts Of Interest (50%)
      None Found At Time Of Publication

    74%

    The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
    (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

    A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

    Higher for Longer After All? Investors See Fed Rates Falling More Slowly.

    The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. Jeanna Smialek Tuesday, 09 April 2024 09:02
    • Unique Points
      • Investors went into 2024 expecting the Federal Reserve to cut rates sharply. Stubborn inflation and quick growth call that into question.
      • Market pricing now suggests that rates will end the year in the neighborhood of 4.75 percent, which would mean Fed officials had cut rates two or three times from their current 5.3 percent.
    • Accuracy
      No Contradictions at Time Of Publication
    • Deception (50%)
      The article is deceptive in its use of the phrase 'higher for longer' to describe what investors expect from interest rates. The author uses this phrase multiple times throughout the article without providing any context or clarification on what it actually means. Additionally, the author quotes experts who say that inflation and economic growth are factors that will influence interest rate decisions, but does not provide any evidence of these claims.
      • The Fed might take longer to start cutting borrowing costs and proceed with those reductions more slowly this year.
    • Fallacies (70%)
      The article contains an appeal to authority fallacy by stating that investors were betting big on Federal Reserve rate cuts at the start of 2024. The author also uses a dichotomous depiction when describing how policymakers are trying to strike a delicate balance between keeping interest rates too high for too long and cutting borrowing costs too early or too much, which could lead to inflation taking even firmer root.
      • Investors were betting big on Federal Reserve rate cuts at the start of 2024
      • policymakers are trying to strike a delicate balance between keeping interest rates too high for too long and cutting borrowing costs too early or too much
    • Bias (85%)
      The article contains examples of monetary bias and religious bias. The author uses language that depicts the Federal Reserve as being responsible for inflation and economic growth, which could be seen as a form of religious bias. Additionally, the article mentions that investors were betting big on Federal Reserve rate cuts at the start of 2024, which could be seen as an example of monetary bias.
      • The Fed might take longer to start cutting borrowing costs and proceed with those reductions more slowly this year.
      • Site Conflicts Of Interest (50%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      75%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Bridgewater’s Bob Prince says Fed rate-cutting hopes are ‘off track’

      Financial Times Thursday, 11 April 2024 03:38
      • Unique Points
        • The Federal Reserve is in no rush to lower its benchmark rate.
        • Earlier expectations that the central bank was planning multiple cuts before the end of the year seem less likely.
        • Inflation is staying stubbornly higher, which experts say is likely keeping the Fed on the sidelines.
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (0%)
        The article contains an appeal to authority fallacy. The author cites the Federal Reserve's decision not to cut interest rates as evidence that their rate-cutting hopes are off track. However, this does not necessarily mean that the Fed is correct in its decision or that there were no other factors at play.
        • The article states:
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (0%)
        None Found At Time Of Publication