Federal Reserve Officials Hint At Potential Rate Cuts Amid Mixed Employment Report

According to Odaily, the Federal Reserve has entered its routine 'silent period.' Before this official communication blackout, two senior Fed officials hinted that despite a mixed employment report released this Friday, the Fed might still consider a half-percentage-point rate cut in the upcoming meeting. However, they emphasized that the Fed would proceed with caution when taking action. Fed Governor Christopher Waller and New York Fed President John Williams indicated that given the decline in inflation and the weakening U.S. labor market, multiple rate cuts should be considered this year. The Federal Funds futures market experienced significant fluctuations this week, initially suggesting a higher likelihood of a 50 basis point rate cut this month. Although these bets have since been reduced, traders still anticipate that the central bank will cut rates by more than one percentage point this year, indicating that the Fed may need to intensify its efforts to address the economic slowdown.