Xinhua Finance Washington, February 21 (Reporter Xu Yuan) The U.S. Federal Reserve Board of Directors Michelle Bowman said on the 21st that there is not enough confidence to confirm the direction of the economy, and it is not the time to cut interest rates.
Speaking at an event in Washington, D.C., Bowman said that since the start of the pandemic, the reliability of economic data has declined and is prone to sharper corrections than usual. The Fed** wants to wait for more information to confirm that the U.S. economy is weakening and inflation is moving towards the Fed's long-term target of 2%.
Bowman noted that the process of cutting rates will begin at some point in the future, but given the uncertainty of the data, now is certainly not the time to cut rates. "We still have plenty of time to gain confidence in the direction of the economy. ”
The Fed will hold its next monetary policy meeting on March 19-20. The minutes of the January meeting released on the 21st showed that the Federal Reserve unanimously "judged that the policy rate may be at the peak of the current tightening cycle". But most of the participants "noted the risk of easing policy stance too soon", suggesting that the risk may outweigh the risk of keeping interest rates at their current elevations.
Editor: Wang Shurui.
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