Reported 8 months ago
Diverse opinions exist on when and by how much the Federal Reserve will cut interest rates, ranging from one to two decreases this year, including the possibility of an increase according to Harvard economist Larry Summers. While recent economic indicators show conflicting data, Fed Chairman Jerome Powell indicated that the central bank is not yet prepared to reduce rates, mentioning a strong labor market and progress toward price stability. The favorable May CPI data are seen as building confidence but not sufficient for policy changes. Mohamed El-Erian criticized the Fed's policy stance, suggesting that waiting too long to cut rates could harm the economy. Various economists propose different potential paths for the Fed, with some anticipating rate cuts later this year.
Source: YAHOO