US Federal Reserve: Jerome Powell indirectly for three interest rate cuts - financial expert analyzed

US Federal Reserve: Jerome Powell indirectly for three interest rate cuts - financial expert analyzed

According to a report by www.faz.net,

The head of the US Federal Reserve, Jerome Powell, indirectly promised three interest rate cuts in the USA in an interview with the US television channel CBS. He also emphasized that everything depends on the data and that there is a broad majority in the decision-making body in favor of interest rate cuts this year. However, Powell dampened expectations of a first rate cut at the upcoming monetary policy meeting next month. Markets had previously speculated that the Fed would cut interest rates six times this year, which had boosted the stock market.

This statement from Jerome Powell is of great importance for the financial industry as it shows that the Fed is ready to loosen monetary policy to stimulate a weakening economy. The prospect of interest rates being cut has a direct impact on the stock market, as lower interest rates allow companies to borrow cheaply, thereby encouraging investment and growth. The real estate and consumer industries also benefit from lower interest rates as they make it easier to obtain credit and encourage consumers to buy.

Jerome Powell's announcement is expected to have a positive impact on the stock market as expectations of lower interest rates spur investment. This should also mean good news for consumers and the real estate industry, as lower interest rates make it easier to borrow and fuel demand. However, it is important to keep an eye on further developments in economic data and the Fed's actual moves to analyze the long-term impact.