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Fed chief reinforces pessimism with interest rate cuts in US

Fed chief reinforces pessimism with interest rate cuts in US

According to Rafael Bostick of the Atlanta Federal Reserve, the country should have only one interest rate cut in 2024.

President of the Atlanta Federal Reserve, Raphael Bostick, this Monday (March 25, 2024) said the US should see only a 0.25% interest rate cut in 2024, revising its previous forecast of 2 cuts for that year. Bostick justified his new outlook by citing persistent inflation and stronger-than-expected economic indicators.

Also, the chairman spoke about the uncertainty surrounding the U.S. central bank's 2% inflation target, noting in December that his confidence in the target had declined. He said the persistence of inflation in the U.S. was a key factor in revising expectations for an interest rate cut, predicting a possible cut before the end of the year.

Bostick's speech comes later Central Reserve The decision not to change interest rates last week.

The then Chairman of the Central Bank Jerome Powell, delivered a more moderate speech than expected. While addressing inflation that exceeded forecasts in the first months of the year, Powell announced that the path to the inflation target will be uneven, in line with previous forecasts and within current expectations. He also confirmed the Bank's forecast of 3 interest rate cuts throughout 2024.

with the information that investment.br

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