Cutting rates too soon could be 'quite disruptive', says Fed's Powell

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WASHINGTON, April 4 ― The US Federal Reserve's high benchmark rate is “doing its job” against elevated inflation, chairman Jerome Powell said yesterday, warning that...

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Last month, Fed policymakers penciled in three rate cuts for this year, staying the course despite a recent uptick in inflation which has disrupted recent progress against rising prices.Powell told a conference in California that the current risks to the US economy were “two-sided,” with negative consequences for the economy if policymakers moved to cut rates too fast or too slow.

Bostic has been on a journey about the timing of cuts in recent months, moving from expressing reservations about early cuts to voicing cautious support for starting them by summer.

 

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