A key member of the Federal Reserve, the US central bank, has told the BBC that inflation is only coming down “very, very slowly” and “let’s not be in a hurry” on interest rate cuts.
Raphael Bostic, the President of the Atlanta Federal Reserve, told BBC News that US interest rates will have to be kept at a “restrictive level” and might only ease “at the end of 2024”.
Expectations of a delay to US interest rate cuts has sent reverberations around the world economy in recent weeks, impacting government borrowing costs, including in the UK.
At the beginning of the year, markets expected a series of rate cuts in the US and across Europe.
Seems like the media conglomerates are all chomping at the bit to see interest rates fall. shocked pikachu
The Fed has been clear about this since the beginning - interest rates are their primary mechanism for combating inflation. Since inflation has been persistent, we should not expect rates to come down in the near term, and frankly I don’t think that is a bad thing.
Investors now need to be more careful about where they put their money, since money isn’t free anymore. Yes, this means that the internet is being enshittified, but my hope is that it also means that the services that stick around will find a sustainable business model that consumers will find to be more consistent and reliable.
