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Is the FED Ready to Cut Interest Rates? Critical Statements Came from a Hawkish FED Member!

Is the FED Ready to Cut Interest Rates? Critical Statements Came from a Hawkish FED Member!

Kansas City Fed President Jeffrey Schmid, who was appointed as a Fed member about a year ago and is known for his hawkish stance, spoke about interest rate cuts.

Speaking to Bloomberg TV at the Jackson Hole Symposium, Schmid said he wanted to see more economic data before supporting any decision to cut interest rates.

The FED member, who has stated that more patience is needed for interest rate cuts since his first speech, accepted that inflation is moving in the right direction but argued that the FED should be a little more patient for the cuts.

Schmid, who acknowledged that the latest data provided confidence that inflation was cooling and that the Fed was preparing the ground for a rate cut, said he wanted to see more data:

Financial markets widely expect the Fed to lower its benchmark interest rate from the 5.25%-5.50% range it has held since July 2023. While a 25 basis point cut is priced into the market for September, there is also an expectation of a 50 basis point cut.

*This is not investment advice.

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