Biden expects more rate cuts from Fed, says work 'not done'

U.S. President Joe Biden said Thursday that he expects more interest rate cuts from the Federal Reserve, noting the central bank's work is not finished yet.

Biden said the Fed's latest rate cut is good news for American consumers, meaning that the cost of buying a home or a car would be going down and lower borrowing costs will support economic growth.

He highlighted that annual consumer inflation peaked at 9.1% in June 2022 but it is down closer to the Fed's goal of 2% at the moment.

He said inflation in the U.S. has come down faster than almost any other advanced economies in the world.

"That doesn't mean our work is done," he said, adding "I'm not here to take a victory lap."

"Let's be clear: the Fed lowering interest rates isn't a declaration of victory. It's a declaration of progress to signal we've entered a new phase of our economy and our recovery," he said.

Biden emphasized that monetary loosening would provide greater confidence for businesses and more investment for economic expansion.

"Interest rates are going to be coming down, and they're expected to go down further, and that's a good place for us to be now," he added.

The Fed on Wednesday lowered interest rates by 50 basis points, starting its monetary easing in an aggressive way, and delivering its biggest rate cut in 16 years.

Its projection materials signaled two more 25 basis point interest rate cuts by the end of 2024, an additional 100 points of rate cuts next year, and another 50 basis points of rate cuts for 2026.