Mumbai, 09 Oct 2024 (Commoditiescontrol):The U.S. Federal Reserve's September meeting minutes highlighted solid support among officials for a half-point interest rate cut, bringing the benchmark rate to 4.75%-5.00%. This move was aimed at better aligning monetary policy with recent inflation and labor market trends. However, the minutes emphasized no commitment to a specific pace of future rate cuts, with discussions on further easing remaining open.
While most policymakers backed the 50-basis-point reduction, a few favored a smaller quarter-point cut, reflecting the diversity of views within the Fed. The rate cut was framed as a "recalibration" in response to falling inflation, not a sign of economic weakness, as inflation nears the Fed’s 2% target while the broader economy remains stable. Concerns over a softening labor market were noted, with future cuts likely tied to ongoing economic data.
Fed Governor Michelle Bowman dissented, advocating for a more modest quarter-point cut. Despite varying opinions, projections showed that nearly all policymakers expect further rate cuts this year.
(By Commoditiescontrol Bureau; +91-9820130172)
|