After Higher Than Expected Inflation Data, US President Joe Biden Talks About The Time For A Rate Cut

In light of the higher-than-expected inflation figures in the USA, FED official Barkin and US President Joe Biden made separate statements on the subject.

Barkin expressed that he was optimistic about the progress made on inflation and said, “I think we have made a lot of progress on inflation.” Addressing the issue of artificial intelligence, Barkin predicted, “Artificial intelligence will develop rapidly and replace some jobs.”

Despite concerns in some quarters, Barkin dismissed the idea that commercial real estate (CRE) poses a systemic risk. “I don’t see any suggestion that CRE is a systemic risk,” he said.

In his latest statement, US President Biden acknowledged the decline in inflation and stated that “there has been a decrease of more than 60% compared to the peak, but more is needed.” He reassured the public that the administration had a plan to deal with inflation.

However, Biden also hinted at the possibility of a delay in the interest rate cut due to inflation news. “Inflation news may delay the rate cut, but I don’t know what the FED will do, but there will be a rate cut before the end of the year,” he said.

Following the inflation report, investors are opposed to the FED starting interest rate cuts in June and see it as more likely to start at a later date. In particular, Goldman Sachs thinks that the FED’s first interest rate cut will occur in July instead of June.

*This is not investment advice.

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