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HomeThe Federal Reserve cut to "money" in December and then a break

The Federal Reserve cut to “money” in December and then a break

Expectations are strong. Another rate cut of 25 basis points by the Federal Reservewhich will then take a break until at least March. That’s what’s at stake under FedWatch Futures, following the publication of The Gray BookThe usual monthly report on the economy, and so on Words by President Jerome Powellduring a New York Times event, just two weeks before the next FOMC meeting.

Powell: Strong economy, more caution

The US economy is in good shape. Inflation has come down, unemployment is at a low level. We are not where we want to be yet. With inflationbut we are. Very close“, said President Jerome Powell In his speech at the DealBook conference, he recalled that “first we raised rates, then we left them unchanged for 14 months and – when other central banks had already cut – we last Also started”.

“No, The economy is in a better position How it was in September and how we thought – he added – so that we could allow ourselves to be More careful towards the neutral position“, the President pointed out that the data received during this period, compared to September, show that the economy is stronger than we thought, that the American economy is really strong”.

The seed book sees a better economy.

Monthly Bulletin On State of the economy In the 12 districts of the Fed (Bij Book) it speaks of an economic activity. “Slight increase in most districts”.

According to the report, three regions showed slight or moderate growth, which offset flat or slightly declining activity in two other regions. While growth in economic activity was generally muted, growth expectations rose moderately in most geographies and sectors.

i Business contacts He expressed Optimism Its demand will increase in the coming months. Consumer spending was generally stable.

Looking at job market, The Gray Book reveals that i Employment levels remained stable Or only the districts have increased slightly. Recruitment activity was moderate. As worker turnover remained low and few companies reported staffing increases. Besides that Termination level was reported as Basu. i Contacts have indicated that they expect the current pace of price increases to continue, but businesses in several districts have indicated that tariffs A significant downside risk to inflation.

Minicut in December and then a break

i Future Needle Feed Watchis listed on the CME, so a “mini” rate cut in December is likely, to that extent 25 basis points, with a 74 percent probabilitycompared to a week ago.

gave Expectations for the coming months They see the potential No interference At the January meeting and the 25-point intervention in March (in this case the probability is 46.4% and is met by 35.3% that predicts another breakdown).

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