Free Trial

MNI INTERVIEW2: Fed To Cut Once At Most This Year- Ghamami

Sticky inflation means officials must show more patience, former Fed Board economist says.

The Federal Reserve has room to cut interest rates just once later this year at most with inflation staying elevated and a higher neutral rate making monetary policy less restrictive, SEC economist and former Fed board researcher Samim Ghamami told MNI.

“I don’t think the Fed should cut rates in the near-term, not until they are confident that inflation is stable. There’s a significant chance that we get at most one rate cut this year,” he said on MNI’s FedSpeak Podcast. Strong growth and employment also reduce any sense of urgency, Ghamami said.

Keep reading...Show less
365 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Federal Reserve has room to cut interest rates just once later this year at most with inflation staying elevated and a higher neutral rate making monetary policy less restrictive, SEC economist and former Fed board researcher Samim Ghamami told MNI.

“I don’t think the Fed should cut rates in the near-term, not until they are confident that inflation is stable. There’s a significant chance that we get at most one rate cut this year,” he said on MNI’s FedSpeak Podcast. Strong growth and employment also reduce any sense of urgency, Ghamami said.

Keep reading...Show less