The OECD has suggested that a rapid fall in US inflation could lead to interest rate cuts within months. However, the UK is expected to have the highest inflation rate in the G7. The OECD emphasized that major central banks should remain vigilant in the fight against inflation. The Bank of England is urged to be prudent with interest rate cuts amidst the UK's high inflation. There are differing views within the Fed, with Mester suggesting that wage gains are still too high for reaching 2% inflation, while also acknowledging the potential for more persistent inflation. Overall, the focus is on the potential for rate cuts in response to easing inflation, but caution is advised in light of the UK's high inflation and varying perspectives within the Fed.
Fed's Mester open to rate cuts if clear inflation is easing further https://t.co/ThZVG2cvbb https://t.co/WNAaGrC6J1
❖ MESTER: POSSIBLE INFLATION MAY BE MORE PERSISTENT THAN EXPECTED
🔴 FED’S MESTER: HIGHER PRODUCTIVITY LEVELS MAY CHANGE WAGE-INFLATION CALCULUS.
🔴 FED’S MESTER: WAGE GAINS STILL TOO HIGH FOR GETTING TO 2% INFLATION.
🔴 FED’S MESTER: WE MUST BE ATTENTIVE TO RISK THAT THE LABOR MARKET WILL COOL FASTER-THAN-EXPECTED.
Falling US inflation opens door to rate cuts within months, says OECD via @FT https://t.co/LSth3Zgijf
The BOE may cut rates this year as a “reward" for lower inflation https://t.co/Vy1nLKz5et
Central banks must beat inflation before cutting interest rates, says OECD https://t.co/0taILAeOpU
UK inflation to be highest in G7 as Bank of England urged to be ‘prudent’ with interest rate cuts https://t.co/X1u7GNuBjk #inflation #interestrates
UK forecast to have the highest inflation in the G7 and the fourth worst rate of growth in the G20 🔽 https://t.co/jZUfiPPHjN
The world’s major central banks mustn’t drop their guard in the fight against inflation, the OECD says https://t.co/1YrTwrALnm via @economics
Breaking news: A rapid fall in US inflation has opened the way for interest rate cuts within months, according to the OECD, but the UK will be burdened by the G7’s highest inflation rate https://t.co/bQqmw5Jj81 https://t.co/ZcjckHtvBs
Too soon to cry victory on inflation, OECD tells central banks https://t.co/JHm9m2QYH7 via @WHorobin https://t.co/AF9DYJN5xE
Breaking news: Breaking news: A rapid fall in US inflation has opened the way for interest rate cuts within months, according to the OECD, but the UK will be burdened by the G7’s highest inflation rate https://t.co/d0KOHeKJ1d https://t.co/Aolo2aokR0
Falling US Inflation Opens Door To Rate Cuts Within Months, Says OECD - FT https://t.co/ntkATVUVbt
The world’s major central banks mustn’t drop their guard in the fight against inflation, the OECD says https://t.co/28Jawnt77F
🔴 OECD: MONETARY POLICY SHOULD REMAIN RESTRICTIVE FOR SOME TIME.
Falling US inflation opens door to rate cuts within months, says OECD https://t.co/QwvWq898pX