Powell says Fed will likely cut rates cautiously given persistent inflation pressures
Posted: Nov 14, 2024
- Federal Reserve Chairman Jerome Powell stated that the Fed will likely cut interest rates slowly and cautiously due to persistent inflation pressures
- Inflation is nearing the Fed's 2% target, but the economy remains strong
- Economists predict another quarter-point rate cut in December, following previous cuts in September and last week
- Wall Street anticipates only two rate reductions in 2025, compared to the four signaled by the central bank officials in September
- Powell suggests that inflation may remain slightly above the target in the coming months but should eventually decline
- Other Fed officials have expressed uncertainty about further rate cuts given steady economic growth and inflation trends
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - Most comments are skeptical about rate cuts and express disbelief in market understanding of Powell’s strategies; sarcasm and humor dominate the discussion, showing more doubt and negativity. Summarized comments: - Powell indicates that no rate cut is likely before February at the earliest, and markets may react negatively if new cuts are not announced as anticipated - Some users sarcastically imply disbelief in market reactions and rate decisions, indicating ongoing surprise or misinterpretation of Powell's statements - Comments suggest that high inflation may persist due to tariffs, labor crackdowns, and interest rate cuts - Speculation exists that Powell's statements might mean more rate hikes rather than cuts - Some believe that the culture of greed and price gouging formed post-Covid will lead to a need for sustained high rates to curb inflation - Users jokingly speculate about Powell's personal life rather than focusing on financial policies - Contradictory views are expressed on whether high inflation implies rising markets or trouble, with some jokes about fixing reports with a marker
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