Reported about 1 year ago
Fed Chairman Powell held a press conference after the rate decision meeting on June 12, stating the Fed has room and patience to continue observing data without urgency to cut rates. The Federal Reserve decided on Wednesday to keep interest rates unchanged and revised upward the inflation expectations for this year, reducing the expected rate cuts for the year. Despite a slight correction in the US stock market, analysts emphasize the strong US economy under the pressure of high rates, maintaining low unemployment rates, allowing the Fed and investors reasonable wait before considering rate cuts. Powell reiterated that while the economy remains strong and unemployment figures are positive, inflation needs to be lowered to 2%, remaining a key focus for the Fed. The new economic forecast projects a strong 2.1% economic growth rate for the US this year, with unemployment rate expected to remain at 4% before rising slightly next year. The Fed's concern lies in cooling inflation, with the Core PCE inflation estimate adjusted to 2.8%. The Fed is likely to wait for further data, potentially lowering rates if inflation continues to show a cooling trend. Market analysts caution against premature rate cut expectations, emphasizing the need for continued data evaluation before Fed action.
Source: YAHOO