#BNB鲍威尔 : Inflation above target can still accommodate further rate cuts
BlockBeats news, December 19, Federal Reserve Chairman Powell explained at a press conference why inflation above the Federal Reserve's target can be compatible with further rate cuts. He stated that even if next year's inflation rate only drops to 2.5%, the Federal Reserve may still cut rates next year as indicated by the dot plot, because inflation will be moving in the right direction. Powell further explained that if next year's core PCE inflation annual rate drops to 2.5%, we would see that inflation decline has made meaningful progress. According to the FOMC's latest quarterly economic projections summary, the Federal Reserve expects PCE and core PCE inflation to only drop to 2.5% in 2025, still above the Federal Reserve's 2% target, and the Federal Reserve anticipates two rate cuts in 2025. (Jin Shi)