The Federal Reserve, under Jerome Powell, kept interest rates within the 5.25-5.50% range for the seventh consecutive meeting on Wednesday, as widely anticipated by the market. This decision highlights the contrasting perspectives of prominent economic voices Mohamed El-Erian and Peter Schiff regarding future inflation and monetary policy.
What Happened: El-Erian, a noted economist, shared his thoughts on X, expressing that the softer-than-expected May inflation data, with a core measure reading of 3.4% and a headline rate of 3.3%, strengthens the case for a potential Fed rate cut in the near future.
El-Erian remarked, “While this data release strengthens what I already feel is a solid case for a #FederalReserve cut in June/July—and, if not, certainly in September—based on the overall economic outlook, I suspect that the Fed will view it as necessary but not sufficient. As such, the next few data releases take on even greater importance.”
Full story available on Benzinga.com
The Federal Reserve, under Jerome Powell, kept interest rates within the 5.25-5.50% range for the seventh consecutive meeting on Wednesday, as widely anticipated by the market. This decision highlights the contrasting perspectives of prominent economic voices Mohamed El-Erian and Peter Schiff regarding future inflation and monetary policy.
What Happened: El-Erian, a noted economist, shared his thoughts on X, expressing that the softer-than-expected May inflation data, with a core measure reading of 3.4% and a headline rate of 3.3%, strengthens the case for a potential Fed rate cut in the near future.
El-Erian remarked, “While this data release strengthens what I already feel is a solid case for a #FederalReserve cut in June/July—and, if not, certainly in September—based on the overall economic outlook, I suspect that the Fed will view it as necessary but not sufficient. As such, the next few data releases take on even greater importance.”
Full story available on Benzinga.com
The Federal Reserve, under Jerome Powell, kept interest rates within the 5.25-5.50% range for the seventh consecutive meeting on Wednesday, as widely anticipated by the market. This decision highlights the contrasting perspectives of prominent economic voices Mohamed El-Erian and Peter Schiff regarding future inflation and monetary policy.
What Happened: El-Erian, a noted economist, shared his thoughts on X, expressing that the softer-than-expected May inflation data, with a core measure reading of 3.4% and a headline rate of 3.3%, strengthens the case for a potential Fed rate cut in the near future.
El-Erian remarked, “While this data release strengthens what I already feel is a solid case for a #FederalReserve cut in June/July—and, if not, certainly in September—based on the overall economic outlook, I suspect that the Fed will view it as necessary but not sufficient. As such, the next few data releases take on even greater importance.”
Softer-than-expected May #inflation resulted in a below-consensus-expectation annual reading of 3.4% for the core measure and 3.3% for headline.While this data release strengthens what I already feel is a solid case for a #FederalReserve cut in June/July—and, …Full story available on Benzinga.com Read Morebenzinga neuro, Inflation, Jerome Powell, Kaustubh Bagalkote, Mohamed El-Erian, Monetary Policy, News, Paul Krugman, Peter Schiff, Global, Economics, Federal Reserve, Markets, News, Global, Economics, Federal Reserve, Markets, Benzinga Economics
