Two US Federal Reserve policymakers said on Tuesday they believe inflation is on track to fall to the US central bank’s 2% target and that the labor market is “strong,” even as neither gave any clear guidance on whether they would support another cut. for interest rates later this month.
In an interview with Fox Business Network, San Francisco Fed President Mary Daly offered a similar reading, saying that while a rate cut this month is not “at all out of the question,” it’s not a certainty either.
“We have to continue to recalibrate policy – now, whether that is in December or later, that is a question we will have the opportunity to discuss at our next meeting,” she added. “I think we need to have an open mind here.”
Yesterday, Monday, Federal Reserve Governor Christopher Waller said he was leaning towards another interest rate cut this month.
Tomorrow, Wednesday, Federal Reserve Chairman Jerome Powell will present what is expected from his final public statements before the meeting.
Fed officials have been trying to avoid giving too much direction on how policy will evolve, especially since President-elect Donald Trump won the US election last month.
Trump’s promises of import tariffs, tax cuts and a tough crackdown on immigration could change the economic outlook in the coming months.
Trump and other officials in his incoming administration have pledged to deport undocumented immigrants in a move that could disrupt some industries and change current price and wage dynamics, depending on size. It is estimated that there are millions of these immigrants in the country.
