Banking
Fed’s Powell: Central bank forecasts don’t point to urgent action
Global Banking & Finance Review®
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By Michael S. Derby
NEW YORK (Reuters) – Federal Reserve Chairman Jerome Powell said Wednesday that central bank forecasts for the path of interest rate cuts don’t imply an urgent process.
“There’s nothing in the (Summary of Economic Projections) that suggest the Committee is in a rush to get this done,” Powell said in reference to how fast the central bank is likely to cut rates. But he added in his press conference following the latest Fed meeting that the data will drive monetary policy choices and rate cuts will happen faster or slower as needed.
(Reporting by Michael S. Derby; Editing by Chizu Nomiyama)
Monetary policy refers to the actions undertaken by a central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.
Interest rates are the amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal. They play a crucial role in economic activity and financial markets.
The Federal Reserve, often referred to as the Fed, is the central bank of the United States, responsible for implementing monetary policy, regulating banks, maintaining financial stability, and providing financial services.
A central bank is a national financial institution that oversees the monetary system for a country or group of countries, managing currency issuance, interest rates, and monetary policy.
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