Reported 6 months ago
Atlanta Federal Reserve President Raphael Bostic believes that the Federal Reserve will continue to raise interest rates for a longer period due to slowing progress against inflation, with Citigroup's Chief US Economist Andrew Hollenhorst suggesting that the Fed may need to implement a series of rate cuts to cool down the economy and tackle inflation. Despite a strong Purchasing Managers Index (PMI) report indicating economic acceleration, Hollenhorst points out that consumer data, such as weaker retail sales, suggests a different story, highlighting the need for a balanced approach by the Fed. The current challenging economic environment may lead to a series of rate cuts once initiated, emphasizing the importance of monitoring employment data.
Source: YAHOO