Fed Officials Leave Door Open to Another Large Interest-Rate Cut
- Policymakers nod to extra room above estimated ‘neutral’ rate
- Most favoring quarter-point cuts, but eyeing data closely
Federal Reserve officials last week to lower their benchmark rate by a half percentage point to a range of 4.75% to 5%.
Photographer: Stefani Reynolds/BloombergA handful of Federal Reserve officials on Monday left open the door to additional large interest-rate cuts, noting that current rates still weigh heavily on the US economy.
“Over the next 12 months, we have a long way to come down to get the interest rate to something like neutral to try to hold the conditions where they are,” Chicago Fed President Austan Goolsbee said in a moderated Q&A event.