The head of the US Federal Reserve in Chicago, Austin Goolsbee, said that policymakers should cut interest rates if US inflation rates continue to fall towards the target level of 2%.
Goolsbee's statements came after the core personal consumption expenditures price index slowed to 0.1% on a monthly basis in May, the slowest rate in six months.
Monetary policymakers at the Federal Reserve have kept interest rates steady at their highest level in more than two decades since last July, and indicated the need for more evidence that inflation is heading towards the target level before cutting interest rates.
For his part, Wael Makarem, chief market strategist at Exness, said that the markets expect two interest rate cuts during the current year, while the Federal Reserve hints at only one cut this year.
Makarem expected one reduction in the interest rate this year, especially with the recent rise in the price of oil, which will interact with inflation by rising.
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