DAVOS - Adena Friedman, the CEO of Nasdaq, during a panel discussion today at the World Economic Forum in Davos, urged caution regarding the potential for early interest rate cuts by the Federal Reserve, despite positive inflation trends. Friedman emphasized the critical need for economic stability following a period of inflation and highlighted the importance of maintaining stability within the benchmark overnight borrowing range before implementing any significant policy shifts.Friedman acknowledged that there are indications suggesting that rate reductions could be forthcoming. However, she pointed out that since December, the benchmark rate has remained unchanged at a steady range of 5.25%-5.5%. This comes after the Federal Open Market Committee (FOMC) countered inflation with a succession of 11 rate increases from March 2022 to July 2023.She further mentioned that there is the potential for up to three rate cuts in the year 2024, aligning with projections from FOMC members. Her comments come at a time when the market is closely monitoring the Federal Reserve's monetary policy decisions, which have significant implications for financial markets and the broader economy.
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