U.S. Former Treasury Secretary Yellen: Still Believe Fed Could Cut Rates Later This Year

BlockBeats News, April 15th. Former US Treasury Secretary Yellen stated that she still believes the US may cut interest rates later this year, but the oil price volatility triggered by the Iran war has cast a shadow on the outlook. Yellen said, "This is actually a broad-based supply shock, spreading from gasoline prices to liquefied natural gas, fertilizers, food, shipping costs, and areas such as semiconductors."

Yellen stated that while not ruling out the possibility of needing to raise rates, stable long-term inflation expectations suggest that this scenario is not very likely at the moment. "I think my guess is that there may be interest rate cuts by the end of this year. I think this is entirely possible and the most likely scenario. However, many things could happen."