Economic Outlook - The Chicago Federal Reserve President expressed caution regarding further interest rate cuts as the U.S. economy faces slower growth and a weaker labor market [1][2] - The Federal Open Market Committee (FOMC) voted 11-1 to lower the federal funds rate to a range of 4%-4.25%, marking the first easing of the year [2][3] Inflation and Interest Rates - Inflation has remained above the Fed's 2% target for over four and a half years, prompting a careful approach to aggressive rate cuts [2][4] - The FOMC's projections suggest a neutral funds rate around 3.1%, indicating potential for further cuts in the benchmark rate [3][4] Labor Market Insights - Recent trends show a significant softening in hiring, although the unemployment rate remains low at 4.3% historically [4] - The Chicago Fed introduced a labor market monitor that forecasts the unemployment rate and includes real-time labor statistics, indicating stability in the labor market [5][6]

By Dan Burns (Reuters) -The Federal Reserve needs to be "very cautious" in removing restrictive monetary policy with inflation still above the central bank's 2% target and remaining persistent, Cleveland Fed President Beth Hammack said on Monday. "I think we are only a short distance to neutral, and it worries me that if we remove that restriction from the economy, things can start overheating again," Hammack said in remarks that showed the divisions inside the Fed over whether interest rates will keep f ...

In a new essay, Minneapolis Fed President Neil Qashqari says he sees two more rate cuts coming from the central bank this year. Steve Leeman uh joins uh us now with Mr. . Qashqari.Hey, Steve. And hey, Neil. >> Good morning.>> Thank you, Joe. Let's bring in Mr. . Kashkari, president of the Minneapolis Fed.Neil, let's talk about your um essay this morning, which is fascinating. And I just want to ask you uh first about one of the things that you say in your piece, which is that you're concerned that there cou ...