Inflation is easing faster than expected but has not been fully defeated, International Monetary Fund chief Kristalina Georgieva said on Thursday, urging central bankers to carefully calibrate their decisions on cutting interest rates to incoming data. Georgieva said headline inflation for advanced economies was 2.3% in the final quarter of 2023, down from 9.5% just 18 months ago, and the downward trend was expected to continue in 2024. That would create the conditions for central banks in major advanced economies to begin cutting rates in the second half of the year, although the pace and timing would vary, she told an event hosted by the Atlantic Council think tank.
Federal Reserve Bank of New York President John Williams said on Thursday that the U.S. central bank has made considerable progress lowering inflation, while noting an uncertain outlook means the Fed must watch incoming data to set rate policy. Williams did not explicitly weigh in on his outlook for rates, saying instead of the most recent rate-setting meeting that “the economic projections we issued at that time indicate that if the economy proceeds as expected, it will make sense to dial back the policy restraint gradually over time, starting this year.” But he added, “the outlook ahead is uncertain, and we will need to remain data-dependent,” adding “I will remain focused on the data, the economic outlook, and the risks as we evaluate the appropriate path for monetary policy to best achieve our goals.”
(Bloomberg) -- Oil cooled some of the previous day’s gains amid a choppy few days of activity as traders continue to watch for a potential attack on Israel by Iran or its proxies. Most Read from BloombergUS Sees Imminent Missile Strike on Israel by Iran, ProxiesUS Slams Strikes on Russia Oil Refineries as Risk to Oil MarketsVietnam Tycoon Lan Sentenced to Death Over $12 Billion FraudChinese Cement Maker Halted After 99% Crash in 15 MinutesUS Inflation Refuses to Bend, Fanning Fears It Will Stick
