Fed official: Rate cut is appropriate and necessary first step

DNVN - On September 23, Raphael Bostic, President of the US Federal Reserve (Fed) Atlanta branch, affirmed that cutting interest rates by 0.5 percentage points is "an appropriate and necessary first step", reflecting positive progress in controlling inflation in the world's number 1 economy .

The decision, which received 11 out of 12 votes in favor from Fed policymakers, came from a consensus that the progress in curbing inflation and balancing risks to the health of the labor market was sufficient to mark the right time to shift monetary policy as economic conditions improve, Bostic said.

Mr. Bostic also expressed his support for a larger cut, given that inflation has been moving faster than expected. He said the Fed’s decision puts the institution in a strong position whether inflation continues to fall toward its 2% target or not.

On September 18, the Fed decided to cut interest rates by 0.5 percentage points, bringing the interest rate to a range of 4.75% - 5.00% and starting a monetary policy easing cycle, amid gradually stabilizing inflation. This is the first time the Fed has cut interest rates since 2020.

Cao Thong

Source: https://doanhnghiepvn.vn/quoc-te/quan-chuc-fed-cat-giam-lai-suat-la-buoc-di-dau-tien-thich-hop-va-can-thiet/20240924082856073