Former Senior White House Official’s Serious Call to the Fed: 50 Basis Points Rate Cut Urgently Needed
The post Former Senior White House Official’s Serious Call to the Fed: 50 Basis Points Rate Cut Urgently Needed appeared on BitcoinEthereumNews.com.
Bharat Ramamurti, a former deputy director of the White House National Economic Council, called on the Fed to make a significant rate cut in September and criticized the central bank’s decision to keep rates steady in July. Ramamurti said the Fed “made a mistake” by not cutting rates earlier and that he believes a 50 basis point cut is necessary to address rising risks to price stability and inflation. He cited current labor market data, such as hiring trends, quit rates and jobless claims, as evidence of pressure building in the labor market. However, Ramamurti does not foresee a sudden collapse in employment and argues that the Fed’s current interest rates are overly restrictive given the levels of inflation seen in recent months. “The risks to price stability and inflation are much more serious than the risks facing the labor market,” Ramamurti said, calling on the Fed to reassess its stance. On the subject, Martins Kazaks, a member of the European Central Bank (ECB) Governing Board, said he was ready to discuss a possible rate cut at next month’s meeting. Speaking on August 23, Kazaks said he was “very open” to the idea of cutting interest rates in September, citing growing confidence that inflation would return to the 2% target. However, he noted that a final decision would depend on inflation data to be released in August. Known for his hawkish stance, Kazaks also stressed that the ECB’s monetary policy would remain restrictive in the near term despite the gradual interest rate cuts. He suggested that the ECB could reduce the deposit rate “a few more times” while maintaining its cautious approach. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/former-senior-white-house-officials-serious-call-to-the-fed-50-basis-points-rate-cut-urgently-needed/
Filed under: News - @ August 23, 2024 1:26 am