The Fed's "Super Hawk" Has Changed Course: We May Be Cutting Rates Soon



A heavyweight figure within the Federal Reserve has just sent a major signal. This person is Williams, a close confidant and key deputy to Fed Chair Powell, holding extremely high status. Yesterday, he suddenly said: "Current interest rate policy is a bit too tight, and there is room for a rate cut in the near term."

You can think of the Fed as a driver: last year, inflation was too high, so they slammed on the brakes (raised rates). Now they've realized the speed (economy) has clearly slowed down, and the gas tank (job market) isn't as full as before.

So, they're preparing to carefully ease off the brakes (cut rates), allowing the car to move forward smoothly instead of stalling out.

Although he admits that the "old problem" of inflation hasn't been completely cured, he judges that the condition will gradually improve.

Because of this statement, the market has almost concluded: December is very likely to be the start of rate cuts!
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· 11-24 13:31
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