Fed Launches Aggressive Rate Cuts — Monetary Easing Cycle to Restart

"Based on this updated forecast, their new expectation is that they're going to cut interest rates in October and in December. So, there's going to be two more rate cuts this year."

"And after today's new information, the odds of a rate cut happening in October and in December. So two more rate cuts has increased from 65.9% to 82.6%."

"the median participant has inflation higher than previously expected by the end of next year and the Fed not getting back to the 2% target until 2028."

"we always say we're not on a preset path and we really mean that um the actual decision decisions we make are going to be based on the incoming data, the evolving outlook and the balance of risks uh at the time the decisions are actually made."

"There there wasn't widespread support at all for for a 50 basis point cut today. You know, I I think we've done um we've done very large rate hikes and very large rate cuts in the last 5 years, and you tend to do those at a time when when you feel that policy is out of place and needs to move quickly to a new place. That's not at all what what I feel certainly now."

"I would say it's a it's a mixed picture, but households are in good shape. Banks are in good shape. Overall, households are still in in good shape in the aggregate. And I know that people at the lower end of the income spectrum are under pressure obviously, but um from a financial stability perspective, we monitor that picture. We don't have a view that there's a right or wrong level of asset prices for any particular financial asset, but we monitor the whole the whole picture really looking for structural v vulnerabilities and I would say those are not elevated right now."