Fed Governor Michelle Bowman said the US central bank should adopt a 'cautious approach' to rate cuts. The US Federal Reserve should be careful not to cut rates "too quickly" and risk reigniting stubborn inflation, a senior bank official said Wednesday. "Progress seems to have stalled in recent months," she continued, adding that the Fed should pursue a "cautious approach" on rate cuts going forward. Back in September, Fed officials penciled in an additional quarter percentage-point of cuts before the end of the year. They now assign a probability of around 60 percent that the Fed will lower rates by a quarter point, to between 4.25 and 4.50 percent, down from around 80 percent last week.

Source: Daily Nation November 21, 2024 05:20 UTC