The Federal Reserve expected to begin rate cuts at September FOMC meeting, uncertainty on extent.

From Investing.com: 2024-07-19 08:23:00

The Federal Reserve is expected to begin interest rate cuts at the Sep. 18 FOMC meeting, but the extent of the cuts remains uncertain. Estimating the neutral rate, or optimal rate for economic growth without inflation, is complex. The New York Federal Reserve’s model suggests the neutral rate is around 1.2%, up from a decade ago but down from previous decades. Various views on the neutral rate’s direction exist, with some suggesting an increase. A higher neutral rate could restrict how much the Fed can cut. Factors like real interest rates play a role in determining the neutral rate’s direction. However, reaching any conclusions remains early.



Read more at Investing.com: Fed’s Rate Cut Cycle: What to Expect After September