Federal Reserve President Doubtful of Interest Rate Cuts Until 2024

One sentence summary – Patrick Harker, President of the Federal Reserve Bank of Philadelphia, expressed skepticism about the need for interest rate cuts until 2024, citing the current economic landscape and lack of inflationary pressures, which aligns with Federal Reserve Chair Jerome Powell’s emphasis on softer labor markets to reduce inflation; market traders predict the Federal Open Market Committee will maintain the existing target rate in the upcoming meeting, and it is anticipated that the price of Bitcoin may not significantly react to these developments as the potential for more rate hikes is already factored into prices.

At a glance

  • Patrick Harker expresses skepticism about interest rate cuts until 2024
  • Harker does not see a need for additional rate hikes
  • Market traders predict the Federal Open Market Committee will maintain the existing target rate
  • Federal Reserve’s outlook could shift with easing inflationary pressures
  • Remarks align with Chair Powell’s emphasis on softer labor markets to reduce inflation

The details

Patrick Harker, President of the Federal Reserve Bank of Philadelphia, recently expressed skepticism about the need for interest rate cuts until at least 2024.

Harker’s views are shaped by the current economic landscape, where he does not see a need for additional rate hikes.

Market traders are currently predicting that the Federal Open Market Committee (FOMC) will maintain the existing target rate of 500 to 525 basis points in the forthcoming meeting.

Harker emphasized that the Federal Reserve’s outlook could shift if there is a consistent trend of easing inflationary pressures.

These remarks are in line with Federal Reserve Chair Jerome Powell’s emphasis on the need for softer labor markets to reduce inflation, as he stated in his speech at the Jackson Hole meeting.

It’s important to note that the central bank has generally taken a restrictive stance in its decisions following the pandemic.

This stance has occasionally resulted in bearish signals for Bitcoin.

Interestingly, during periods of high volatility in traditional financial markets, traders have shown a preference for investing in the cryptocurrency market.

Given that the potential for more rate hikes in future FOMC meetings is already factored into prices, it is anticipated that the price of Bitcoin may not significantly react to these developments.

This detailed brief covers President Harker’s doubt about interest rate cuts until 2024, his stance on further rate hikes, the expectation for maintaining the current target rate in the upcoming FOMC meeting, the potential impact of easing inflationary pressures on the Federal Reserve’s outlook, Chairman Powell’s emphasis on the labor market, the central bank’s restrictive decisions post-pandemic, occasional bearish signals for Bitcoin, and the preference for investing in the cryptocurrency market during high volatility in traditional financial markets.

Article X-ray

Here are all the sources used to create this article:

A person holding a calendar with the year 2024 circled and a question mark above their head.

This section links each of the article’s facts back to its original source.

If you have any suspicions that false information is present in the article, you can use this section to investigate where it came from.

coingape.com
– President of the Federal Reserve Bank of Philadelphia, Patrick Harker, expressed doubt about interest rate cuts until at least 2024.
– Harker does not see the need for further rate hikes in the current economic scenario.
– Traders expect the Federal Open Market Committee (FOMC) to maintain the current target rate of 500 to 525 bps in the upcoming meeting.
– Harker stated that the Fed’s outlook could change if there is a sustained trend of cooling down inflationary pressures.
– Fed Chair Jerome Powell emphasized the need for softer labor markets to lower inflation in his speech at the Jackson Hole meeting.
The central bank has been largely restrictive in its post-pandemic decisions, which has sometimes led to bearish signals for Bitcoin.
– Traders have occasionally preferred investing in the crypto market during periods of high volatility in traditional financial markets.
– With the possibility of more rate hikes already priced in for future FOMC meetings, the Bitcoin price may not react significantly.

发表回复