Small font size A Larger text size A Largest text size A

White House adviser sees Fed rate cuts after energy prices fall

BY Reuters | ECONOMIC | 09:35 AM EDT

WASHINGTON, April 10 (Reuters) - White House economic adviser Kevin Hassett said on Friday that the U.S. Federal Reserve should be able to cut interest rates once a reopening of the Strait of Hormuz triggers a rapid decline in energy prices. "There's going to be, you know, a rapid reduction in energy prices once we get the straits open," Hassett told Fox Business Network. "Once the energy prices start to come down, don't forget that that will put downward pressure on inflation and...I think that the outlook for the Fed having the room to cut rates is going to be very solid."

(Reporting by Katharine Jackson; Editing by Doina Chiacu)

More Fixed Income News

US STOCKS-S&P 500, Nasdaq gain on tech boost after inflation data; Mideast tensions in focus BY Reuters |ECONOMIC 10:46 AM EDT
CANADA STOCKS-TSX rises as investors weigh economic data; US-Iran talks in focus BY Reuters |ECONOMIC 10:42 AM EDT
March Consumer Inflation Logs Fastest Pace Since 2022 Amid Higher Energy Prices BY MT Newswires |ECONOMIC 10:39 AM EDT
US consumer sentiment dives to a record low in April amid Iran war BY Reuters |ECONOMIC 10:25 AM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article