Central Banks

The Fed’s Interest-Rate Debate Is Shifting

  • Kashkari: ‘I’m not ready’ to call an end to rate hikes
  • Jackson Hole symposium an opportunity to discuss transition
Goldman Economists Pencil In First Fed Rate Cut for Q2 of 2024
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As Federal Reserve officials close in on the end of their tightening campaign, the debate is shifting from how high interest rates need to go to how long they should stay elevated.

Inflation pressures are easing, which could give policymakers room to keep interest rates at or near current levels for the time being. Still, price gains remain well above the central bank’s 2% target, making policymakers hesitant to declare victory.