Strong data may slow policy path
Investors trim odds for a December cut
Fed39;s Goolsbee sees 125 bps of rate cuts through 2025
Several Fed policymakers lean into slower ratecut pace
WASHINGTON, Reuters Strong U.S. economic and inflation data continue to reshape the debate among Federal Reserve policymakers over the pace and extent of interest rate cuts as investors on Friday further downgraded their expectations for a rate reduction at the central bank39;s December meeting.
In the latest round of comments on U.S. monetary policy, U.S. central bankers continued to express faith that inflation was coming under control and would allow the central bank to lower its benchmark rate over time from the current 4.54.75 range, a level felt to discourage spending and investment, to a more neutral setting.
But how fast they do that, and what level represents neutral, remain under debate, with Fed Chair Jerome Powell on Thursday saying the economy39;s continued strength meant the Fed could take its time with the discussion.
The signs of increasing hesitancy over what a month ago had been bakedin expectations for a quick run of cuts into next year come as a major political shift is underway following Donald Trump39;s victory in last week39;s election, with Wall Street trying to reconcile what it sees as further inflationary pressures arising in the year ahead as the incoming Republican president pushes for tax cuts, higher tariffs and a crackdown on immigration.
Fed officials…