According to The BlockBeats: Loretta Mester, an official of the U.S. Federal Reserve, has stated that she does not anticipate an interest rate cut coming anytime soon. Mester's comments were made during an address on October 4, as reported by BlockBeats news.
Mester noted that while the Fed's inflation target is expected to be achieved by the end of 2025, she believes the inflation risks continue to be skewed to the upside. She further commented that the Federal Reserve may be on the verge of or has already reached the peak of its interest rate target.
This statement follows a period of rising inflation rates in the U.S., leaving investors and policymakers wary about the future of monetary policy.
She suggested that if the present economic situation continues, the next Fed meeting could likely see support for an interest rate hike, contradicting the expectation of some investors for a rate cut. This outlook stems from the belief that ongoing inflation forces necessitate action to prevent their potential negative impact on the economy.
Mester's comments align with the general view of the Federal Reserve, with several other officials expressing similar doubts about the likelihood of interest rate cuts in the near future. Nonetheless, the final decision on this matter will rest on evolving economic conditions and the aggregated opinion and decision of the Federal Open Market Committee members.
