Fed Member Warns! "The Fed's Job Is Getting Harder, Regarding Interest Rates…"

The Fed recently made an expected 25 basis point cut. However, in a statement after the meeting, Fed Chair Jerome Powell warned that the road ahead would be challenging. Powell, in his speech on September 23, stated that the two-sided risk remains, saying, “The short-term risks to inflation are to the upside, and the risks to employment are to the downside, and that's a challenging situation.” The Fed is Going Through a Difficult Period! Following Powell's statements, Cleveland Fed President Beth Hammack also made similar ￰0￱ on CNBC's Squawk Box, Hammack said the Fed faces challenges trying to balance fighting stubborn inflation with protecting ￰1￱ stated that the FED is going through a difficult period and that the institution is stuck between inflation and the job market.

“The Fed is working to reduce inflation to its 2% target while continuing its mission to improve the labor ￰2￱ Fed is stuck between its two tasks.” At this point, the FED member stated that they are going through a difficult period in terms of monetary policy and said that they need to maintain a restrictive policy stance in order to bring inflation back to the 2 percent target. Hammack, who recently stated that they have not been able to reach the 2 percent inflation target for 4.5 years, expressed his concern about ￰3￱ asked whether cutting interest rates was a mistake, he said, “We have a 2% inflation target, but we still haven't reached it in 4.5 years.

I have concerns about this. There's no clear answer yet to the question of whether cutting interest rates was a mistake. We're going through a difficult period.” Hammack recently predicted that the Fed's 2% inflation target would likely be reached by the end of 2027 or early 2028, with inflation remaining above target for the next one to two years. *This is not investment ￰4￱ Reading: Fed Member Warns! "The Fed's Job Is Getting Harder, Regarding Interest Rates…"