After the interest rate cut this week, Fed officials debuted for the first time.
In an interview with Fox Apolis Fed, the Fed of Minne Plus, said that economic strengthening may mean a decrease in the number of interest rate cuts.
This view is the first time that the Fed said, unheard of.In the past, I was afraid that inflation may rebound, so interest rate cuts would not be as expected.Earlier this week, the Federal Reserve Chairman Powell stated on the release that "core inflation remained at a high level", which was actually implying that "interest rate cuts are not as good as expected."
This sentence is undoubtedly "heavy blow" for the financial market.This week, due to the popularity of the US election, the market ignored a "eagle rate cut", and now the Fed has pulled back the thoughts of investors again. Be careful on Monday.
1. Fed officials usually speak publicly on the second week after declaration of interest rate resolution, and this time it was only one day.Kashkali is the first official to pay attention to, and be sure to pay attention.
2. Kashkali mentioned "not as expected", what is expected?It is expected that in the future, there will be 25 basis points at each meeting, which will continue until June next year, and then there may be scattered interest rate cuts in the third and fourth quarters, and then stop the interest rate cut.Kashkali means that the entire interest rate cut cycle will not be the case.
3. Other views:
-There will it be too earlyThe Fed will observe which policies will be implemented, and then incorporate them into analysis.
-The really depends on the short-term plans of Congress and the new government, but productivity and economic growth.If this can be maintained, and our economy is more productive in the future, it means that we may not be able to cut interest rates so much in the end.
-It do not worry about potential conflicts between the Fed and Trump, because both parties want inflation and strong labor market.
4. Kashkali does not mean vaguely, and should pass Powlgou in advance.Powell will give a speech next week, and Kashkali may be warming Powell.
Kashkaris speech is very brain -burning, but if you understand it with Trump in series, it is also simple to understand: to give Trump to prevent injections. Stopping interest rates in the future is not because of you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you, but it is not you.It is because the economy does not need to cut interest rates.The Fed seems to not talk about politics, but in fact, there is no words from Trump.This is also helpless. Only by disclosing everything you want to do in the future and maintaining policy transparency can we maintain independence.
How to understand Trump will be another thing.Biden and Trump will meet at 11:00 at 11:00 on Wednesday, Eastern United States. At that time, the financial market will listen to Trumps voice.
This article comes from: the financial industry
