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MNI INTERVIEW: Fed To Cut Twice In '24, Start Sept - Sheets

MNI speaks with former director of the Fed Board’s division of international finance about the U.S. economic outlook.

The Federal Reserve will need at least two more months of good inflation data to feel confident about the trend of underlying inflation, making September the earliest the central bank can begin lowering interest rates, former Fed board economist Nathan Sheets told MNI.

"There will be enough improvement in the inflation process that the Fed's going to have scope to to start its cutting cycle in September," Sheets said, adding he expects two quarter-point cuts this year. "What you're waiting for is evidence that the terrible months are the outlier and the signal is in a trend of good inflation data."

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The Federal Reserve will need at least two more months of good inflation data to feel confident about the trend of underlying inflation, making September the earliest the central bank can begin lowering interest rates, former Fed board economist Nathan Sheets told MNI.

"There will be enough improvement in the inflation process that the Fed's going to have scope to to start its cutting cycle in September," Sheets said, adding he expects two quarter-point cuts this year. "What you're waiting for is evidence that the terrible months are the outlier and the signal is in a trend of good inflation data."

Keep reading...Show less