However, UBS analysts anticipate that inflation will moderate toward the Fed’s 2% target by mid-year, creating conditions for further rate reductions. Fed Chair Jerome Powell also indicated that monetary policy remains “meaningfully” above the neutral rate, suggesting room for additional easing.
Vice Chair Jefferson made the case that policy would be restrictive even with Fed Funds 100bp lower:
Fed's Jefferson says happy to keep Fed Funds on hold at current rate This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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