Eric Rosengren, former President of the Federal Reserve Bank of Boston, discussed the Federal Reserve's potential for implementing two interest rate cuts this year in light of recent inflation trends.
Speaking to CNBC, Rosengren pointed to discussions within the Federal Open Market Committee (FOMC), where eight participants signaled support for two rate reductions.
He highlighted stabilising inflation metrics, including favorable Consumer Price Index (CPI) data, which he believes could pave the way for rate cuts in September and possibly December.
However, Rosengren cautioned that achieving both cuts hinges on continued positive inflation reports in the upcoming months.
Meanwhile, Federal Reserve Bank of Minneapolis President Neel Kashkari suggested a more conservative outlook, aligning with expectations of a single rate reduction this year, contingent on further economic data.