News on Federal Reserve's Cautious Approach to Policy Easing

Thursday, 12 September 2024, 17:44

News from Fitch indicates that the Federal Reserve will opt for slow policy easing as there's still work to do on inflation. Fitch projects continuous rate cuts in Asia, particularly highlighting China's surprise MLF rate cut in July. The PBOC's actions are influencing global financial markets.
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News on Federal Reserve's Cautious Approach to Policy Easing

Fitch's Outlook on Federal Reserve Policy

According to news from Fitch, the Federal Reserve is taking a cautious approach to policy easing. **There’s still work to do on inflation** before moving forward. Despite the global focus on easing policies, the Fed is expected to proceed slowly, ensuring careful monitoring of inflation metrics.

Impact of China’s Rate Cuts

In Asia, Fitch anticipates that rate cuts will persist in China. The recent cut to the 1-year Medium-term Lending Facility (MLF) rate by the People's Bank of China (PBOC) in July surprised many market participants and reflects ongoing economic strategies aimed at stimulating growth.

  • Federal Reserve's strategy is cautious
  • China's rate cut influences markets
  • Continued scrutiny on inflation rates

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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