Home Forex The default value is for cuts that begin in the 3rd quarter

The default value is for cuts that begin in the 3rd quarter

by SuperiorInvest


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Federal Reserve System (Fed). Atlanta President Raphael Bostic hit newswires Thursday while speaking at an event held at the Atlanta Chamber of Commerce.

Bostic emphasized that the base case is that the Fed will begin exploring rate cuts sometime in the third quarter, but he left the door open for the rate-cutting cycle to begin earlier depending on inflation data.

Main advantages:

  • Fed’s Bostic: Baseline is for a rate cut sometime in Q3, but care must be taken not to cut too soon or risk resuming the price spiral.
  • Bostic is open to cutting rates before July, but only if there is “compelling evidence” that inflation is slowing faster than expected.
  • Given the current uncertainty, it is unwise for the Fed to block any particular way forward.
  • There is a possibility that current geopolitical risks could complicate supply chains; US budget struggles could impact financial markets and the economy.

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