๐จThe Federal Reserve is breaking news
Bess Harkham speaks firmly: Interest rate cuts are on hold, rates may remain โsteadyโ!
Cleveland Fed President Bess Harkham's latest statement has ignited the market: after three consecutive rate cuts, she believes there is no need to change interest rates in the coming months. Although she does not have a vote this year, this 2026 FOMC voter has made her position clearโopposing rate cuts and supporting a โwait-and-seeโ approach.
Harkham is concerned about stubborn inflation, far exceeding the risks of a weak job market. She emphasized that the current interest rate of 3.5%โ3.75% should be maintained at least until next spring, until the impacts of Trump's tariffs are fully realized, before reassessing inflation trends. She even questioned the โdistortionโ of the November 2.7% CPI, suggesting that real inflation might be higher.
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โUnless inflation clearly falls back or employment significantly worsens, rates can be stabilized.โ She firmly stated in a podcast. Previously, she advocated for maintaining a โmore restrictiveโ interest rate. New York Fed's Williams also echoed the call to pause rate cuts. The December meeting was unusually divided, with dissenting voices rising. Let's chat about market trends in the community.
The market holds its breath: The probability of a rate cut in January next year is only 21%. Global investors are closely monitoring the dataโwill this โhawkish counterattackโ completely reverse easing expectations?๐ฅ, s s s can pay attention to this๐ฅ small position layout
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