Economists are beginning to think that the Fed's policy is too tight, and the number of critics is the highest in 13 years

新浪美股 ·  02/12 17:32

Source: Sina US stocks

Economists are beginning to think that the Federal Reserve's monetary policy is a bit too tight.

This is a conclusion drawn from the results of a public opinion survey published by the US National Association for Business Economics (National Association for Business Economics) on Monday. According to the survey, 21% of respondents think the Federal Reserve's current monetary policy stance is “too strict” — the most since 2011.

The results were released prior to the NABE annual economic policy meeting in Washington this week. The collection dates are January 23-30, just before the Federal Reserve's most recent policy meeting on January 30-31.

Between March 2022 and July of last year, Federal Reserve officials raised the benchmark interest rate by more than five percentage points, the fastest tightening cycle since the early 1980s. Inflation fell rapidly in the second half of 2023, triggering financial market expectations that the central bank would start cutting interest rates in early 2024.

At the January meeting, Federal Reserve Chairman Powell and his colleagues voted to keep the benchmark interest rate unchanged, and hinted that the next meeting in March is unlikely to be the starting point for interest rate cuts. Investors are currently betting that policy relaxation will begin in May.

Powell pointed out that strong economic growth and a strong job market are the reasons why it will take some time before the Federal Reserve begins to lift austerity measures. According to the monthly employment report released on February 2, jobs created at the beginning of the year were far higher than expected, and employment growth was also raised in 2023.


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