Is the Fed 'sleepwalking into a policy mistake?': Abrdn analyst calls for faster easing of rates

Published On Sep 2, 2024, 4:37 AM

The article discusses insights from Kenneth Akintewe of Abrdn regarding the U.S. Federal Reserve's interest rate policy. Akintewe suggests that the Fed might be making a mistake by not easing rates soon due to potential signs of economic weakness that aren't fully reflected in current data. While the economy is expected to have a soft landing, concerns about a possible slowdown in 2025 persist. Current data indicates a smaller rise in the PCE price index, which is the Fed’s favored inflation measure, prompting speculation on a future rate cut. Akintewe emphasizes that if the economy is weaker than reported, the Fed may need to implement significant easing, which would take time to affect the economy.