ECB revises inflation outlook as Fed says confidence needed for rate cut is near

파월 “금리 인하에 필요한 물가 둔화 자신감 멀지 않아“ 유럽중앙은행도 인플레 전망치 하향 조정 U.S. Federal Reserve Chair Jerome Powell once again hinted that potential interest rate cuts are on their way. This has led to the S&P500 reaching a new high on Thursday. Our financial correspondent Moon Hye-ryeon tells us more. Central banks of major economies are gaining confidence that rate cuts are not far off as inflation shows signs of slowing. The European Central Bank held its interest rate steady following a fourth meeting, as policymakers hinted at a cut in interest rates this June. The interest rate has been kept at 4-point-5 percent, as the central bank for the twenty Eurozone countries also revised its inflation forecast on Thursday. The latest projection puts inflation at 2-point-3 percent this year --down from the 2-point-7 percent forecast in December --as energy prices are expected to stabilize, alongside lower consumer prices. This comes as Federal Reserve Chair Jerome Powell once again signaled the possibility of interest rate cuts within 2024, noting that the Fed is “not far“ from the confidence needed to ease rates. Speaking at the Senate Banking Committee on Thursday, Powell outlined that the Federal Reserve is poised to gradually lift its restrictive policies once it is assured that inflation is steadily declining towards its 2 percent target. He underscored that this confidence is within reach. Powell’s remarks came only a day after his testimony before Congress, where he presented a similar outlook on rate reductions. However, in his latest statements, he hinted more strongly that the moment to act on such confidence is nearing. Experts say that while core inflation is showing signs of slowing, some concerns need to be addressed before rate cuts can be undertaken. “Because of the highly volatile price of food, the headline inflation is perhaps not coming down as quickly as the central banks want. So they’re going to hold off on lowering the rates until they can see a definite trend on headline inflation and that’s probably going to be in the second half of the year.“ This optimism was mirrored in the stock market’s performance, with the S&P 500 achieving a new record high at Thursday’s close on the New York Stock Exchange. Looking ahead, the Federal Open Market Committee is scheduled to meet on March 19 and 20 when a detailed policy statement and an update on the interest rate outlook are expected. Moon Hye-ryeon, Arirang News. #US_economy #US_Federal_Reserve #Jerome_Powell #interestrate #UnitedStates #미국경제 #제롬파월 #Arirang_News #아리랑뉴스 📣 Facebook : 📣 Twitter : 📣 Homepage : 2024-03-08, 18:00 (KST)