Federal Reserve Governor Powell: Rate cut possible in December, but will depend on upcoming data

BlockBeats News, November 4th, Federal Reserve Governor Cook said on Monday that she believes there is a possibility of a rate cut at the December Federal Reserve meeting, but the decision at that time will be based on information from various channels between now and then, especially in the situation where the government shutdown has caused delays in the release of official data.

Cook said: "Currently, risks on both aspects of the dual mandate are rising. Maintaining interest rates too high could increase the likelihood of a sharp deterioration in the labor market; while a too large rate cut could lead to the anchoring of inflation expectations." "It is quite challenging to give an economic outlook speech at this moment," she said, mentioning that since the government shutdown on October 1st, the latest official data on employment, inflation, and economic growth have been missing.

However, she emphasized: "We are not acting blindly." Decision-makers and staff are actively reviewing various available administrative data, private-sector data, and the results of multiple surveys conducted by the Federal Reserve on businesses and households. These data have so far confirmed her judgment: Inflation is expected to remain slightly above target with upside risks, and the overall labor market remains robust but is cooling and may experience a more rapid-than-expected slowdown. (Jin10)