Most Fed members support further rate cuts this year

Most Fed members believe that interest rates should be reduced further. in the US this year – according to the minutes of the last Fed meeting. According to some meeting participants, the risks to inflation growth would justify no reduction at the September meeting.

“Meeting participants expressed a range of views on the degree of restrictiveness of current monetary policy and its likely future direction. Most considered that it would likely be appropriate to ease monetary policy further over the remainder of the year. Some meeting participants noted that in many respects financial conditions suggest that monetary policy may not be particularly restrictive, which they believe warrants a cautious approach in considering future adjustments in monetary policy,” it was written in the minutes of the US Federal Reserve meeting on September 16-17.

“Several meeting participants said that keeping the federal funds rate unchanged at this meeting made sense or that they would support such a decision. They noted that progress toward the Committee's 2 percent inflation target has stalled this year as inflation data has risen and expressed concern that longer-term inflation expectations could rise if inflation does not return to the target in appropriate time. One participant agreed with the need to change policy towards a more neutral position, but preferred a reduction of 0.5 percentage points. at this meeting,” it added.

After the meeting on September 16-17, the Fed lowered interest rates. in the US by 25 bp. to the range of 4.00-4.25 percent. Stephen Miran, who was in favor of lowering interest rates, voted against the decision. by 50 bp. Analysts polled by Bloomberg expected that interest rates will be reduced by 25 basis points. Earlier, during five consecutive meetings, the interest rates remained unchanged. In the earlier monetary policy easing cycle, the Fed lowered interest rates by 100 basis points.

The next meeting of the Reserve is scheduled for October 28-29.

The dollar is strengthening against the basket of currencies by 0.47%. to 99.04 points, and the profitability of 10-year Treasuries increases by 1 basis point. to 4.13 percent (PAP Business)

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