“A solid majority in the monetary policy committee expects it to be time to start cutting rates again later this year.
It will depend on the data we monitor, what happens to inflation and what is not and also in the labor market, any signs of weakness. ” Jerome Powell During a panel at the ECB forum in Sintra, Portugal, answering a question about when it arrives A cut of Fed rates. Powell replied “I don’t know, it will depend on the data, I cannot remove or enter a specific month on the table” to the question if July will be the right month to cut.
Inflation in the US fell to 2.3% but “when we saw the size of the duties we expected, all the inflation forecasts went up. It is not an excessive reaction, it takes a little more time: the prudent thing to do is to wait and understand more and see what the effects of the duties on inflation will be, Powell explained during a panel at the Sintra ECB forum, Portugal.
“One thing that my predecessors said is that the level of the US debt is sustainable, but the direction is not and must be addressed sooner or later, better before then”, added the president of the Fed among the ironic laughter of the participants for the question referred to the ‘Big Beautiful Deal’ of Trump who would add 2,300 billion debt in a decade. “This is what I said last year and I can’t add much.” Powell replied “I have nothing to tell you about this today” to the question if it will remain as the governor of the Fed at the expiry, in 10 months, of the end of his presidency.
Inflation today at 2% “we are at the objective and what indicates the medium -term forecasts. I do not say mission made but the objective achieved, it is time to recognize it,” said the president of the ECB Christine Lagarde during a panel of central bankers. “Now we face a great” global uncertainty, during which “we will have to continue to be very vigilant to stay in the goal, but we are in a good position to do it”.