Fed: Compelling Evidence Needed to Cut Rates as Inflation Subdues

IconCryptoNewsTerminal Staff05 Jul, 2024

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Fed: Compelling Evidence Needed to Cut Rates as Inflation Subdues

The Federal Reserve's semiannual monetary policy report to Congress expresses cautious optimism regarding inflation. While inflation has slightly moderated, the Fed emphasizes the need for "compelling" evidence of sustained easing before reducing interest rates. The report acknowledges the moderation in inflation since last spring, but notes that it remains elevated. The Fed maintains its stance of a restrictive policy until inflation returns to its target of 2 percent. Regarding the housing sector, the Fed anticipates an easing of inflation pressures over time. It recognizes strains in some commercial real estate markets but assures the resilience of the financial system and ample liquidity.

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