Central Bank set to make initial interest rate reduction this year, potentially lowering rates by a fourth
The Federal Reserve Board of Governors, led by current Chair Jerome Powell, is considering a fed rate cut this year. Powell took over the role in February 2018 and remains in office as of 2025.
Steve Moore, a former White House economic advisor to President Donald Trump, predicts a quarter-point reduction in interest rates. According to Moore, this cut could provide a small stimulus for the U.S. economy.
Despite the prospect of a fed rate cut, Moore maintains that the U.S. economy is healthy. He points to projections from one Federal Reserve Bank, which predicts 3% growth for the third quarter.
However, Moore acknowledges that there are some issues with grocery prices. Nevertheless, he emphasises that the economy is generally in good shape.
The potential fed rate cut could be a quarter of a percentage point, offering a slight boost to the economy as the Fed seeks to navigate the economic landscape. The decision is expected to be made in the coming months, providing insight into the Fed's approach to monetary policy in the current economic climate.
