The Fed: Some experts balk at talk that Fed must cut rates soon if inflation keeps coming down

United States

Over the summer months, as reporters and the markets were pondering how many more times the Federal Reserve would hike interest rates this year, New York Fed President John Williams mentioned one reason the central bank might actually start cutting rates in 2024.

In an interview, Williams explained that, assuming inflation comes down, if the Fed doesn’t cut interest rates at some point, then real — or adjusted-for-inflation — interest rates will go up and up and up.

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