December Fed Rate Cut Doubtful - Reuters
Federal Reserve Vice Chair Philip Jefferson said the U.S. central bank needs to “proceed slowly” with any further interest rate cuts as it eases policy towards a level that would likely stop putting downward pressure on inflation. He agreed the central bank’s quarter-percentage-point rate cut in October was appropriate, given increased risks to the job market and the likelihood that inflation risks “have declined somewhat recently.”
Overall, Fed officials are divided over the need to cut rates further, with different opinions about the level of inflation risk and whether the job market is likely to erode further. The lack of government data has made analysis more complicated, and Jefferson said “it remains unclear how much official data we will see” before the December 9-10 Fed policy meeting. The Bureau of Labor Statistics will release its monthly employment report for September on Thursday, but the full publication schedule for other data disrupted by the 43-day government shutdown has not been announced.
How it impacts you? We’re all on pins and needles especially ones that have recently been laid off or the fear of it. It’s best to bunker down throughout the winter and into Jan as even with the government reopening, investors are cagey about putting their money back into the market with the current shakey-ness of the economy. Just bear down folks. Could be a long winter.
Thanks for reading Bitcoinomics21! Please share this post with everyone!
