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圣路易斯联储主席:美联储可能需要放慢降息步伐

St. Louis Fed President: The Fed may need to slow down the pace of interest rate cuts.

Zhitong Finance ·  Dec 4 22:24

Musalem said that in a situation where inflation remains above target and concerns about the labor market have eased, policymakers may need to slow down the pace of interest rate cuts.

According to the Securities Times APP, St. Louis Fed President Alberto Musalem stated that in a situation where inflation remains above target and concerns about the labor market have eased, policymakers may need to slow down the pace of interest rate cuts.

Musalem pointed out that although it may still be necessary to gradually lower interest rates in the long term, a cautious approach should be taken at present. He believes that the risk of cutting interest rates too quickly is greater than the risk of insufficient rate cuts.

On Wednesday, Musalem said: "Maintaining policy flexibility is particularly important. Perhaps it is time to consider slowing down the pace of interest rate cuts, or even pausing them, in order to more carefully assess the current economic environment, the latest data, and future economic prospects.

Musalem also reiterated that the Fed is close to achieving its employment and price stability goals, and monetary policy is in good shape.

Since September, the Fed has cut interest rates by 0.75 percentage points. However, due to fluctuations in inflation data and strong performance in the labor market, some officials are calling for a more cautious approach to rate cuts. Fed officials will hold their next meeting on December 17-18.

Musalem said he expects the inflation rate to gradually approach the Fed's 2% target over the next two years. However, he also warned that data released since September suggest that progress in price increases may stall, with even a risk of reversal.

In addition, he pointed out that policymakers need to adopt a cautious attitude because the exact level of the "neutral interest rate" is still unclear - that is, the level of interest rates that neither stimulate nor suppress economic growth. At the same time, he also mentioned that whether productivity growth can continue is also an unknown.

Before the next meeting, policymakers will have more economic data to refer to, including a latest employment report set to be released on Friday.

The translation is provided by third-party software.


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