Federal Reserve spokesperson: It is expected that the Federal Reserve will maintain interest rates slightly above neutral levels in the future

2024-11-08 17:52:35
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ChainCatcher news, according to Jinshi Data, the Federal Reserve's "mouthpiece," Wall Street Journal reporter Nick Timiraos commented on the Fed's interest rate decision in November: "The Federal Reserve decided to cut interest rates by 25 basis points on Thursday, but released more uncertainty about the pace of further rate cuts. The Fed is still trying to prevent the significant rate hikes of the past two and a half years from dragging down the economy. Within a similar timeframe, investors in the interest rate futures market have continuously lowered their expectations for the Fed's rate cuts over the next year."

"According to Citibank, they now believe the Fed will lower rates to around 3.6% by 2026, compared to their estimate of 2.8% in September. Officials are trying to bring rates back to a more 'normal' or 'neutral' level, which neither stimulates nor slows economic growth, but they do not know what a normal rate is. Policies that promote economic activity or prices will also lead officials to conclude that they should maintain a moderately restrictive rate stance. This means they will keep rates slightly above normal or neutral levels."

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