Three voting members of the Federal Reserve have indicated that future decisions on interest rate cuts will be based on data while maintaining a balanced approach
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Several officials from the U.S. Federal Reserve (Fed) spoke on the 8th, indicating that the risks of inflation and employment in America are nearing a balance. Fed Vice Chair Jefferson noted that while inflation risks have decreased, employment risks are rising, thus reaching an overall balance. He emphasized that decisions regarding interest rate adjustments will be based on currently released economic data.
Jefferson mentioned that the overheated labor market has cooled, but the economy continues to grow at a "robust pace," and that the inflation rate is approaching the Fed's 2% target, which is expected to continue downwards.
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Boston Fed President Collins, speaking at a community bankers' conference, stated that policy normalization should be cautious and data-driven. She believes inflation will return to target "in due time" while keeping the labor market healthy.
On the same day, Fed Governor Cook warned during an event in Germany that future interest rate cuts should be executed with a "balanced approach" to prevent negative impacts on job growth. She emphasized concerns about the potential effects of natural disasters and geopolitical factors on the U.
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