Will the Federal Open Market Committee continue to cut interest rates at its meeting later this month? What will the future policy path look like? At least three U.S. central bank officials shared their opinions on Monday.
① New York Fed President williams stated: Further rate cuts may be needed to move towards a neutral stance. Given that the risks to inflation and employment have become more balanced, the decision-makers may need to continue cutting rates to adjust the policy interest rate towards a neutral position; however, williams did not specify whether he would support a rate cut at the Federal Reserve's meeting this month. He mentioned that related decisions will be made at each meeting.
② Fed Governor Waller expressed a preference for another rate cut in December. Fed Governor Christopher Waller stated that he leans towards cutting rates again at the upcoming meeting later this month, although the data released at that time might provide reasons for maintaining the current rates; "Currently, I lean towards supporting a reduction in the policy rate at the December meeting," Waller said in a speech prepared in advance for the Fed Framework Review Meeting hosted by the American Institute for Economic Research in Washington.
③ Atlanta Fed President expressed openness to options for the December meeting. Atlanta Fed President Raphael Bostic indicated that he has not yet decided whether a rate cut is necessary this month, but still believes rates should be further lowered in the coming months. Bostic wrote in an article published on Monday: "The risks associated with achieving the committee's dual mandate of maximum employment and price stability have become roughly balanced. Therefore, we should also begin to shift monetary policy to a stance that neither stimulates nor suppresses economic activity."