US Treasury Secretary Urges Fed to Cut Rates if Inflation Falls
US Treasury Secretary Bessent emphasized that a decline in inflation should prompt the Federal Reserve to ease interest rates, signaling possible shifts in monetary policy direction.
Summary
US Treasury Secretary Bessent stated on November 2 that the Federal Reserve should lower interest rates if inflation shows a sustained decline. The remarks highlight a potential adjustment in US monetary policy aligned with inflation trends.
Terms & Concepts
- Federal Reserve: The central banking system of the United States, responsible for monetary policy including interest rate decisions.
- Inflation: The rate at which the general level of prices for goods and services rises, eroding purchasing power.
- Interest Rates: The cost of borrowing money or the return for lending, set by central banks as a key tool in monetary policy.
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