Federal Reserve officials: The Federal Reserve is expected to cut interest rates twice this year
Federal Reserve officials expect two interest rate cuts this year, with a strong economy but uncertainties. Atlanta Fed President Bostic mentioned that immigration policies could affect labor supply, and businesses are concerned about a decrease in workers. Although the employment outlook is stable, there are signs of softening, and companies may pass on tariff costs to consumers. Inflation is expected to move towards the 2% target, but the process will not be smooth. Market risks are highlighted, and investment should be approached with caution
On Thursday, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that he expects the Federal Reserve to cut interest rates twice this year. The FOMC's monetary policy is in good shape, and the U.S. economy is strong.
Bostic mentioned that there is a need to emphasize uncertainty regarding his outlook for 2025.
Many contacts are concerned that the Trump administration's immigration policies may reduce the labor supply. Numerous businesses have stated that a decrease in workers could cause disruptions. The employment outlook is stable; however, there are clear signs of softening.
Many companies are expected to pass on the tariff costs incurred by Trump to American consumers. It is believed that inflation will move towards the 2% target, but the process will be bumpy.
Potential changes in U.S. government policy drive uncertainty.
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