🏛🇱🇷 FED OFFICIALS DISAGREE ON INTEREST RATE CUT WITH INFLATION ABOVE AVERAGE ‼️❓️
The president of the Cleveland Federal Reserve, Beth Hammack, stated this Friday, December 12, that the central bank of the United States has not been able to achieve its inflation target for five years. The statement highlights the tensions within the institution regarding the appropriate pace of interest rate reductions amid inflationary pressures that remain above the 2% target.
The Federal Reserve cut interest rates by 0.25 percentage points on Wednesday, December 10, to a range between 3.5% and 3.75%. This was the third consecutive cut since September, but the decision faced the greatest internal opposition since September 2019.
Austan Goolsbee from the Chicago Federal Reserve and Jeff Schmid from the Kansas City Federal Reserve voted against the cut, preferring to keep rates unchanged due to still high inflation. A third official, Stephen Miran, dissented in the opposite direction, advocating for a larger reduction of 0.50 percentage points.
"Considering that inflation has been above our target for four and a half years, and progress has stagnated for several months, I believe that the more cautious approach would be to wait for more data," Goolsbee stated in a release issued on Friday.
