Two Fed officials offer reassurances about cuts in 2024 despite ‘bumps’ and ‘uncertainties’

Two Fed officials offered new reassurances Thursday to investors a day after another hot inflation reading spooked markets, saying it is still possible that interest rates will be cut this year.

New York Fed president John Williams said it will make sense to reduce rates gradually “starting this year” if the economy proceeds as expected.

“I expect inflation to continue its gradual return to 2%, although there will likely be bumps along the way, as we’ve seen in some recent inflation readings,” he said in a new speech delivered Thursday morning.

Meanwhile, Boston Fed President Susan Collins said she still expects to cut rates later this year, but needs more time to gather data to feel confident inflation will continue dropping. That could spell fewer cuts in 2024.


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