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MNI FED WATCH: No Hurry To Cut, But Easing Starts With A Bang

Dot plot signals significant uncertainty over near-term rate path

MNI (WASHINGTON) - The Federal Reserve is not in a rush to get interest rates lower but would be willing to reduce borrowing costs more rapidly if a still-solid economy were to weaken unexpectedly, Fed Chair Jerome Powell said Wednesday after the central bank jumpstarted the monetary easing cycle with an aggressive half point cut. 

The Fed's Summary of Economic Projections showed significant uncertainty about the path ahead: Nine of 19 officials see another 50bps of cuts this year, while seven want just another quarter point and two think the Fed is done for the year. One official sees 75bps of additional cuts in 2025.  

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MNI (WASHINGTON) - The Federal Reserve is not in a rush to get interest rates lower but would be willing to reduce borrowing costs more rapidly if a still-solid economy were to weaken unexpectedly, Fed Chair Jerome Powell said Wednesday after the central bank jumpstarted the monetary easing cycle with an aggressive half point cut. 

The Fed's Summary of Economic Projections showed significant uncertainty about the path ahead: Nine of 19 officials see another 50bps of cuts this year, while seven want just another quarter point and two think the Fed is done for the year. One official sees 75bps of additional cuts in 2025.  

Keep reading...Show less