The post Fed’s Goolsbee: Trend of economic data justifies multiple rate cuts appeared on BitcoinEthereumNews.com.

Federal Reserve Bank of Chicago President Austan Goolsbee said on Friday that the longer-run trend of labor market and inflation data justify the Fed easing interest-rate policy soon and then steadily over the next year, per MarketWatch. Key quotes The long arc shows inflation is coming down very significantly, and the unemployment rate is rising faster. Given the more favorable inflation data and the less favorable unemployment data, it is pretty clear that the path is not just rate cuts soon.  Said he saw “more” warning signs about the cooling labor market. I don’t want us to be basing decisions on one data point.  If we remain tight for too long, we are going to have to deal with the employment side of the mandate.  Persistent weakness has raised the possibility that the labor market will keep cooling, and could “turn into something worse.  Market reaction  The US Dollar Index (DXY) is trading 0.02% lower on the day at 101.04, as of writing.   Fed FAQs Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions.…

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Filed under: News - @ September 6, 2024 2:16 am