2024-02-05 15:38:04
On February 4, Federal Reserve Chairman Jerome Powell said in a CBS interview that aired on the same day that officials have time to strengthen their confidence that inflation will continue to decline amid a strong economy. , expressed the recognition that the issue of the timing of interest rate cuts could be approached “cautiously”. Photographed in Washington, D.C. in 2019 (2024 Reuters/Joshua Roberts)
[ワシントン ４日 ロイター] – Federal Reserve Chairman Jerome Powell said in a CBS interview aired on the 4th that with the economy strong, officials have time to strengthen their confidence that inflation will continue to decline. He acknowledged that the issue of the timing of interest rate cuts can be approached “cautiously.”
“It would be prudent to take some time and confirm with the data that the inflation rate has fallen to 2% sustainably,” he said on the news program “60 Minutes.” “I want to approach this issue cautiously.” Stated.
Data showing a softening labor market could prompt a rate cut, while evidence that inflation has stopped slowing could delay it further than expected.
He reiterated his belief that inflation is likely to continue falling over the coming months, but wants to be more confident before starting to cut interest rates. He also predicted that, barring external shocks, the U.S. economy would continue to grow.
“We need to balance the risks of cutting rates too early or too late,” he said, adding, “The economy is in good shape and inflation is slowing. I would like to gain a little more confidence that we are in the right place.”
He also touched on the global geopolitical situation, pointing out that there is always a risk that an external shock could throw the U.S. economy off course. On the other hand, regarding China’s real estate slump and economic slowdown, he said that the US and China’s financial systems and production systems are not deeply interconnected, and that “the US may feel some impact, but it won’t be that big.” He expressed his view.
Since the interview was conducted on the 1st, there was no exchange regarding the employment statistics to be announced on the 2nd.
Powell emphasized that the timing of rate cuts will depend on the data. Regarding the interest rate forecast released by authorities in December last year, which predicted three 25 basis point (bp) rate cuts in 2024, the company stated, “Nothing has happened that would make us think that the forecast will change significantly.” Nothing is happening.”
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