(Finance) – If the economy continues to evolve as expected and inflation to drop, the Federal Reserve will progressively move its monetary tone towards a “more neutral” level. The president of the FED stated this, Jerome Powell reiterating however that decisions will be made “from time to time” based on the evolution of the data and that the monetary institution “there is no predetermined path”. Powell noted that inflation has fallen and that the FOMC is confident that it is on a sustainable path back to inflation. 2% target.
“If the economy evolves as expectedor the money line will move towards a more neutral level over time. But we are not bound to any predetermined path. The risks are bivalent – he warned – and we will continue to take our decisions from time to time”https://www.Finance.it/DettaglioNews/227_2024-09-30_TLB/.”In evaluating further adjustments to the line we will carefully examine the data that developments in the outlook and the balance of risks will be received. Overalland the economy is in a solid pictureoe – he underlined – we intend to use our tools to maintain it.”
“If the economy develops as expected” Federal Reserve central bankers’ forecasts imply that “two more rate cuts” of 25 basis points will be made “by the end of this year,” he remarked.
Speaking about the FOMC, Powell stressed that “it’s not a committee (FOMC) that feels a rush to cut rates quickly. But if the economy slows more than we expect then we could cut more quickly,” and vice versa. “In any case it is a process that we believe should take place over a certain period of time – he repeated – and not quickly”.