Federal Reserve policymakers said they are ready to lower interest rates at the U.S. central bank’s meeting in two weeks.
“It is now appropriate to dial down the degree of restrictiveness in the stance of policy by reducing the target range for the federal funds rate,” New York Fed President John Williams said at a Council on Foreign Relations event, though by how much and at what pace, he added, is still undetermined.
Fed Governor Christopher Waller, speaking at the University of Notre Dame, said: “If the data supports cuts at consecutive meetings, then I believe it will be appropriate to cut at consecutive meetings. If the data suggests the need for larger cuts, then I will support that as well. I was a big advocate of front-loading rate hikes when inflation accelerated in 2022, and I will be an advocate of front-loading rate cuts if that is appropriate.”
Chicago Fed President Austan Goolsbee said central bankers need to lower rates to keep the labor market from weakening too much. He noted, “I think it raises some serious questions, not just about this meeting but about the next several months. How do we make sure... to not have things turn into something worse, that’s the critical challenge facing the Fed in my view. I do basically think... in past cycles when things slow down the conditions warrant multiple moves, not just a single one.”
Markets are somewhat torn on whether the Fed will cut interest rates 25 or 50 basis points following its Sept. 17-18 monetary policy meeting, though the highest odds are with a smaller reduction to start. Read more from Pro Farmer.
