As the Federal Reserve maintains its policy interest rate at a 23-year high of 5.25%-5.50%, anticipation builds for a potential rate cut in September.
Fed Chairman Jerome Powell hinted at a possible reduction if inflation continues to drop.
The market currently sees a 51.5% chance of a 25 basis point cut and a 48.5% chance of a 50 basis point cut.
Bank of America CEO Brian Moynihan warned that delaying rate cuts could harm US consumers.
In a CBS News interview, he emphasized the need for timely reductions to avoid disappointing consumers, which could be hard to reverse.
Regarding former President Donald Trump’s suggestion that presidents should influence Fed decisions, Moynihan stated that while advice is welcome, the final decision should remain with the Fed chair.
He noted that economies with independent central banks perform better.
On September 18, the US Federal Reserve made a notable move by cutting interest rates by 50 basis points, marking the start of a new easing cycle.
The Federal Reserve’s recent 50 basis point rate cut left experts divided.
After the long-awaited rate cut by the Federal Reserve, the crypto market started showing signs of recovery.
Federal Reserve meetings usually follow a predictable pattern, but this week’s Federal Open Market Committee (FOMC) gathering was shrouded in uncertainty.