
PANews May 2 news, according to The Wall Street Journal, "Federal Reserve mouthpiece" Nick Timiraos wrote that Dallas Fed President Lorie Logan, Minneapolis Fed President Neel Kashkari, and two other regional Fed presidents oppose retaining the wording "more likely to lower interest rates next" in this week's interest rate meeting, believing that the next interest rate adjustment could be either an increase or a decrease. The soon-to-retire Fed Chair Powell stated that the committee is gradually shifting from a "bias towards rate cuts" to a "neutral stance," and that if there is a need for rate hikes in the future, the Fed will first transition to neutral before signaling an interest rate increase.
Nick Timiraos analyzes that the internal discussion within the Fed regarding the interest rate path has undergone a significant shift, and the focus is no longer primarily on when to resume rate cuts, but rather on the conditions under which rate hikes might be needed again. Since the Fed began issuing policy statements in 1994, disagreements on how to describe the policy direction (rather than actual interest rate changes) have been rare.
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