Kansas City Federal Reserve President Jeff Schmid signaled on Thursday a reluctance to cut interest rates again as the U.S. central bank comes into the new year facing a resilient economy and inflation that remains above its 2% target.
Philadelphia Federal Reserve President Patrick Harker said on Thursday he still expects the U.S. central bank to cut interest rates but added that the policy path is clouded by considerable economic uncertainty.
The effects of potential changes in trade and immigration policy suggested” restoring 2% inflation “could take longer than previously anticipated,” according to the Fed minutes released Wednesday.
But minutes from their December meeting suggest that the decision was a close call — and that there is no guarantee policymakers will lower rates again anytime soon. The minutes of the central bank’s Dec.
A top policymaker at the US Federal Reserve says that he still supports reducing interest rates this year, despite elevated inflation and the prospect of widespread tariffs.
To summarize, the Federal Reserve has already lowered by 50% the number of anticipated interest rate cuts in 2025. It was four in September, but that number dropped to two at the December meeting. Policymakers may revise that number lower if their economic projections once again prove incorrect.
The Federal Reserve sets the federal funds target rate, also known as the fed funds rate, which is the interest rate at which commercial banks lend to each other overnight. Below, CNBC Select ...
Collins, in prepared remarks for an event Thursday in Boston, said the economy was in a “good place,” but noted that progress on cooling inflation will likely be slower this year than previously anticipated.