Fed Governor It is not appropriate to cut interest rates in the short term

Mondo Finance Updated on 2024-02-13

Michelle Bowman, a member of the US Federal Reserve, said on the 12th that it would be inappropriate to start cutting interest rates in the "near future".

Bowman said on the same day that it is "too early" for the Fed to start cutting interest rates or how much they will cut, saying that it is not appropriate to cut rates in the short term.

Recently, the Federal Reserve has spoken intensively, frequently expressing the view that the likelihood of interest rate cuts in the short term is low. Dallas Fed President Lorie Logan previously said there was no urgency to cut interest rates. Atlanta Fed President Raphael Bostic also warned that the U.S. economy still has a "long way to go" before returning to the 2% inflation target.

The Federal Reserve ended its first monetary policy meeting of the year on January 31 and maintained the target range for the federal interest rate at 5 for four consecutive times25% to 55%. In a press conference after the meeting, Fed Chair Jerome Powell downplayed and postponed market expectations for the first rate cut at the March meeting.

According to a tracking data from the Chicago Mercantile Exchange, as of the 12th Eastern time, the market expects the probability that the Fed will maintain interest rates in March is close to 85%, but believes that the probability of a 25 basis point rate cut in May is more than 50%.

*: Xinhua Finance (Reporter Xu Yuan).

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