ECB cuts interest rates as inflation fight reaches a turning point
What prompted the European Central Bank to cut interest rates for the first time in five years?
The European Central Bank (ECB) cut interest rates for the first time in five years due to significant progress in the global fight against inflation5. Inflation rates in the eurozone have been steadily declining, allowing the ECB to take action in an attempt to stimulate economic growth. This move follows similar actions by other central banks, such as the Bank of Canada, and is seen as a milestone in the battle against inflation.
According to CME FedWatch, what is the likelihood of the Federal Reserve cutting rates in September?
According to CME FedWatch, there is a 70 percent chance of the Federal Reserve cutting rates in September.
What are the current expectations for the Federal Reserve regarding interest rate cuts in 2024, and how do these compare to their stance on inflation?
The current expectations for the Federal Reserve regarding interest rate cuts in 2024 are that there is a 70 percent chance of a Fed cut in September, according to CME FedWatch. However, it is important to note that almost no one expects the Fed to cut when its policymaking committee meets on June 12. The Federal Reserve's stance on inflation is that it remains higher than their 2 percent target for price stability, and they have not yet signaled any plans to cut interest rates. They have kept their benchmark lending rate at a 23-year high since July, after aggressively raising rates starting two years ago. The central bank has said that it needs to have enough confidence that inflation is under control before lowering borrowing costs.