Federal Reserve Chair Jerome H. Powell Signals Possible Interest Rate Cuts in 2024
Jerome H. Powell, the chair of the Federal Reserve, recently announced that the central bank may consider lowering borrowing costs in 2024. However, Powell emphasized the importance of policymakers being confident that inflation is under control before making any decisions regarding interest rates.
According to Powell, the current policy rate is likely at its peak for the tightening cycle, and it may be appropriate to ease policy restraint later this year if the economy progresses as expected. The Federal Reserve’s next meeting is scheduled for March 19-20, but it is unlikely that interest rates will be lowered at that time.
Despite this, markets are anticipating potential interest rate cuts at the June meeting, with some predicting as many as three to four rate cuts by the end of the year. Powell warned against cutting rates too early, as this could undo progress made in controlling inflation and may necessitate tighter policy in the future.
Investors and policymakers will be closely monitoring the Federal Reserve’s actions in the coming months to gauge the central bank’s response to economic conditions. Stay tuned to Jala News for further updates on this developing story.
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