New York Federal Reserve Bank President John Williams has asserted that considering interest rate cuts is premature at the moment. Monetary policymakers are currently evaluating whether the existing policy is adequately accommodative to guide inflation back to the targeted 2%. In contrast, Federal Reserve Bank of Atlanta President Rafael Bostic foresees two interest rate reductions in the upcoming year, with the possibility of such adjustments emerging no earlier than the third quarter of 2024.
It is noteworthy that, on average, monetary policymakers anticipate three rate cuts in the United States, while futures traders are pricing in the possibility of up to six cuts starting from March next year. In the previous week, the Federal Reserve, the country’s central bank, decided to keep interest rates unchanged. Chairman Jerome Powell indicated that the era of historically tight monetary policy was likely coming to an end, and discussions about reducing borrowing costs were actively under consideration.
Powell’s statements align with expectations, indicating nearly unanimous agreement that borrowing costs will decrease in 2024.