Recently, U.S. Treasury Secretary Basent made remarks about the Federal Reserve's interest rate policy, sparking widespread discussion in the financial community. The interest rate strategy analysis team at Deutsche Bank questioned Basent's views, arguing that there are significant differences between them and the actual models used by the Federal Reserve.



Bessent has claimed that various models indicate that the current Intrerest Rate should be cut by 150 to 175 basis points. However, experts from Deutsche Bank, after in-depth research, failed to find specific models supporting this claim. The strategy team led by former Federal Reserve economist Matthew Raskin pointed out in a recent report that the rules used by the Federal Reserve in its semi-annual monetary policy report do not support such a large reduction in interest rates.

This controversy highlights the differences in views between government officials and market analysts regarding economic prospects and the direction of monetary policy. Deutsche Bank's analysis seems to suggest that Bessenet may have been overly optimistic in anticipating the extent and timing of interest rate cuts.

This has sparked more speculation in the financial markets regarding the future direction of the Federal Reserve's policies. Market participants are closely monitoring the speeches of Federal Reserve officials and economic data for clues that may influence the Intrerest Rate decisions.

Despite the disagreements, this discussion also reflects the complexity of the current economic environment and the challenges faced by decision-makers in balancing inflation control and economic growth. The future direction of the Federal Reserve's policies remains an important focus for financial markets.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • Repost
  • Share
Comment
0/400
GateUser-7b078580vip
· 7h ago
Data seems off, let's wait and see.
View OriginalReply0
Anon4461vip
· 08-20 07:51
Just play around with it.
View OriginalReply0
FalseProfitProphetvip
· 08-20 07:50
Can't get along with the air.
View OriginalReply0
ValidatorVikingvip
· 08-20 07:45
smh... benster's models are as battle-tested as a rookie validator node
Reply0
DefiPlaybookvip
· 08-20 07:41
Interest rate cut expectations are hanging again, Clip Coupons and waste gas.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)