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MNI INTERVIEW: Fed Might Not Cut Rates Until 2025-Swanson

MNI speaks with former San Francisco Fed economist Eric Swanson.

The Federal Reserve is likely to wait at least through the end of this year and possibly until 2025 before cutting interest rates because inflation could remain too high for comfort, former senior San Francisco Fed staffer Eric Swanson told MNI.

“If inflation is sluggish coming down, and it has been sluggish for most of the year, then they might just do one cut in December or maybe not, maybe wait until January or February, depending on how the data comes in. That's totally possible,” said Swanson, who spent some 16 years at the SF Fed. (See MNI INTERVIEW: Good Chance Fed Won't Cut Rates In 2024-Plosser)

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The Federal Reserve is likely to wait at least through the end of this year and possibly until 2025 before cutting interest rates because inflation could remain too high for comfort, former senior San Francisco Fed staffer Eric Swanson told MNI.

“If inflation is sluggish coming down, and it has been sluggish for most of the year, then they might just do one cut in December or maybe not, maybe wait until January or February, depending on how the data comes in. That's totally possible,” said Swanson, who spent some 16 years at the SF Fed. (See MNI INTERVIEW: Good Chance Fed Won't Cut Rates In 2024-Plosser)

Keep reading...Show less