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US Treasury Secretary reiterates rate cut before September, criticizes Fed's inflation prediction
Summary: In a recent interview, US Treasury Secretary Janet Yellen reiterated that the Federal Reserve should be able to cut rates before September based on its own criteria. Yellen stated, 'I think if the criteria for a rate cut is that tariffs won't lead to inflation, if the Fed is going to follow that criteria, I ...
In a recent interview, US Treasury Secretary Janet Yellen reiterated that the Federal Reserve should be able to cut rates before September based on its own criteria. Yellen stated, 'I think if the criteria for a rate cut is that tariffs won't lead to inflation, if the Fed is going to follow that criteria, I think they can implement it earlier, but definitely before September. However, I don't agree with the Fed's criteria, but if they are going to follow that criteria, why not implement it in the fall?'
Yellen expressed that the Fed's prediction of rising inflation is incorrect, but she does not question the Fed's view that economic growth will weaken, and believes that the forecast of slowing economic growth should prompt the Fed to resume rate cuts.
Yellen had previously stated that she would not comment on future monetary policy.
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Link: US Treasury Secretary reiterates rate cut before September, criticizes Fed's inflation prediction [Copy]
