Central Banks
Fed Officials Argue for Gradual Pace of Cuts Starting Soon
- Pair says US labor market, economy still appear healthy
- Fed’s Schmid says he’s not yet ready to support lower rates
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Two Federal Reserve officials said they believe it’s appropriate for the US central bank to begin lowering interest rates soon, and that the pace of subsequent cutting should be “gradual” and “methodical.”
Boston Fed President Susan Collins used the terms in interviews with Bloomberg News and Fox Business, while Philadelphia Fed chief Patrick Harker employed similar wording in interviews with Reuters and CNBC in Jackson Hole, Wyoming. Neither provided more precision on what the terms mean for the frequency of cuts.