The cautious attitude within the Federal Reserve towards further interest rate cuts is becoming apparent. The latest statements from two Federal Reserve officials indicate that they believe there is limited room for continued easing, casting cold water on the prospect of continuing action this year after last week’s interest rate cut
St. Louis Fed President Alberto Musalem, who holds voting rights for this year’s FOMC meeting of the Federal Reserve’s monetary policy committee, said on Monday that he supports last week’s interest rate cut, but expects limited room for further easing if policies are not allowed to become too loose
Atlanta Fed President Raphael Bostic, who holds FOMC voting rights in 2027, stated on the same day that he currently sees no reason to further cut interest rates this year due to concerns about inflation. Afterwards, Beth Hammack, the Cleveland Fed chairman who has voting rights for the 2026 FOMC meeting, also expressed concerns about inflation, stating that she is very concerned about inflation and must be cautious and loose to avoid overheating the economy.
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