June 25 () –
Lisa Cook, a member of the governing body of the United States Federal Reserve (Fed), stated this Tuesday at a meeting in New York that it will be appropriate to lower interest rates “at some point” in the future when anticipating that inflation will drop from gradually throughout this year before deepening its decline in 2025.
“With significant advances in inflation and the labor market gradually cooling, at some point it will be appropriate to reduce the level of policy restriction to maintain a healthy balance in the economy,” Cook said.
In any case, the person responsible for monetary policy has clarified that the times will always depend on the incoming economic data and its implications for the macro perspectives and the balance of risks.
Cook has predicted that inflation rates in three and six months will continue to decline with a “bumpy road.” However, the twelve-month comparison will move “sideways” for the remainder of this year, with monthly data likely similar to the “favorable” readings for the second half of 2023.
Looking ahead to next year, inflation will slow down more quickly due to the decrease in charges for housing services, a “slightly negative” inflation of basic goods and an inflation of basic services, with the exception of residential, which ” would soften over time.”
For its part, the US economy would continue to hold up despite the impact of high interest rates. This would have negatively affected home sales and construction, while delinquencies would have increased, to levels that “are not yet worrying, but that warrant monitoring.”
In addition, Cook has indicated that the labor market would be “more or less” in a situation equivalent to what it was before the pandemic, this is “tight, but not overheated.”
Add Comment