Sep 30, 2024, 4:03 AM
Sep 30, 2024, 4:03 AM

Powell speaks on policy risks ahead of 2024 election

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Highlights
  • Federal Reserve Chair Jerome Powell is set to speak on Monday amid concerns from economists regarding potential policy mistakes and risks associated with the upcoming 2024 election.
  • A recent NABE survey indicated that 39% of forecasters view monetary policy mistakes as the greatest threat to the U.S. economy, surpassing concerns about the presidential election and international conflicts.
  • Powell's address will focus on the Fed's recent interest rate cuts and their implications for economic growth, highlighting the cautious outlook among economists.
Story

On Monday, Federal Reserve Chair Jerome Powell will deliver a speech in Nashville, Tennessee, amid rising concerns among economists about potential policy missteps and the implications of the upcoming 2024 presidential election. The National Association for Business Economics (NABE) recently conducted a survey that highlighted these concerns, revealing that 39% of professional forecasters consider monetary policy mistakes the greatest threat to the U.S. economy over the next year. This sentiment is notably higher than the 23% who are worried about the presidential election and escalating international conflicts. Powell is expected to elaborate on the Federal Reserve's recent decision to cut its benchmark interest rate by 50 basis points during the September 17-18 meeting. This decision has been a focal point for both economists and investors, as it is seen as a move to stimulate economic growth. The Fed's actions have already triggered a market rally, indicating a positive response from investors. The NABE survey also revealed that while panelists have revised their economic growth forecasts higher for 2024, they have lowered their expectations for 2025. This cautious outlook reflects the uncertainty surrounding future economic conditions and the potential impact of the Fed's monetary policy. As Powell prepares to address these issues, the focus will be on how the recent interest rate cuts may influence borrowing costs and economic growth moving forward, particularly in light of the lower-than-expected inflation reported in the Personal Consumption Expenditures Price Index.

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