2 Federal Reserve officials oppose an interest rate cut in December
By CHRISTOPHER RUGABER
WASHINGTON (AP) — Two Federal Reserve officials expressed opposition Wednesday to another interest rate cut at the central bank’s next meeting in December, further muddying the outlook for the Fed’s next steps.
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The remarks by Susan Collins, president of the Federal Reserve Bank of Boston, and Raphael Bostic, president of the Atlanta Fed, suggest that the central bank’s rate-setting committee could be tilting against what had been an expected third straight cut next month.
The officials cited several reasons for keeping rates unchanged, after a reduction in September and in October. They argued that inflation is stubbornly elevated and has been above the Fed’s 2% target for nearly five years, while the economy is resilient and doesn’t appear to need more rate cuts. The job market is stumbling, with hiring nearly at a standstill, but layoffs still seem muted, they said.
FILE – Veteran and business owner Jackson Dalton arranges protective gear at the Black Box Safety offices, Thursday, Nov. 7, 2024, in El Cajon, Calif. (AP Photo/Gregory Bull, File)
FILE – Veteran and business owner Jackson Dalton gestures towards protective gear at the Black Box Safety offices, Thursday, Nov. 7, 2024, in El Cajon, Calif. (AP Photo/Gregory Bull, File)
FILE – Veteran and business owner Jackson Dalton walks along a hallway at the Black Box Safety offices, Thursday, Nov. 7, 2024, in El Cajon, Calif. (AP Photo/Gregory Bull, File)