The head of the San Francisco Fed, Daly, recently made a statement saying that the job market is not doing well right now, and price increases are not as fierce as before; it's time to consider lowering interest rates! Her words stirred up quite a bit of excitement, as lowering interest rates means borrowing money will be cheaper, making life a bit easier for the common people.
Daly was quite straightforward, mentioning that they discuss whether to lower interest rates at every meeting, just as frequently as we discuss what to have for dinner. She specifically noted that it would be appropriate to lower rates twice this year, by 0.25% each time, like giving the economy a slow drip of support. However, the focus is not on how many times to lower rates, but when to do it. She said that the two key times are September and December. If prices suddenly rise again or if the number of job seekers unexpectedly increases, then there might not be a need to lower rates as much. But based on the current situation, it might even require more rate cuts! It sounds like fortune-telling, leaving a way out, as if it was said without saying anything at all!
In my opinion, these economists speak in circles. To put it simply: the economy is not doing well right now, and they need to find ways to stimulate it. Lowering interest rates is their trump card, much like how we drink hot water when we feel uncomfortable. However, they are much more cautious than us, only lowering it a little at a time and deciding whether to lower it again based on the situation.
What we common people care about most is whether mortgage payments can be reduced after the interest rate cuts and whether savings interest will decrease again. Daly's implied message is for everyone to hang in there; good days are coming soon. But when they will come and how much they will improve still depends on the situation. Sigh, those officials keep saying the same old things; we just listen and carry on with our lives, eating and drinking as we should, while life goes on!