"The Fed's Echo Chamber": The Federal Reserve is actually making up for lost time
"The Fed Whisperer" Nick Timiraos' latest article states that the Federal Reserve voted today to cut interest rates by 0.5 percentage points, marking the first rate cut since 2020 and a bolder start. Powell's decision to cut rates exceeded the expectations of most analysts a few days ago, firmly ushering the Federal Reserve into a new phase of fighting inflation: the Fed is currently trying to prevent previous rate hikes from further weakening the U.S. labor market. Powell stated at a press conference, "We are committed to maintaining our economic strength." "This decision reflects our growing confidence that by appropriately adjusting our policy stance, we can maintain the strong momentum in the labor market." While some Fed officials have argued in recent weeks that the economy is not weak enough to warrant a 50 basis point rate cut, others have concluded that the cooling of the labor market this summer provides a reason for further rate cuts, as the Fed is essentially making up for lost time
On September 19th, Jinshi Data reported that "Fed Whisperer" Nick Timiraos wrote in his latest article that the Federal Reserve voted today to cut interest rates by 0.5 percentage points. This is the first rate cut since 2020, and it marks a bolder start. Powell's decision to cut rates exceeded the expectations of most analysts a few days ago, firmly putting the Federal Reserve into a new phase of fighting inflation: the Fed is currently trying to prevent past rate hikes from further weakening the U.S. labor market. Powell stated at the press conference, "We are committed to maintaining our economic strength." "This decision reflects our growing confidence that by appropriately adjusting our policy stance, we can maintain the strong momentum in the labor market." While some Fed officials have argued in recent weeks that the economy is not weak enough to warrant a 50 basis point rate cut, others have concluded that the cooling of the labor market this summer provides a reason for further rate cuts, as the Fed is essentially making up for lost time