The 0.5 point cut in the basic interest rate in the United States came late, Finance Minister Fernando Haddad said on Tuesday (18). According to him, the Federal Reserve’s decision will start a long-lasting cycle of interest rate cuts that will benefit the entire planet.
“I think that [o corte de juros nos Estados Unidos] It came a little late, but it came. We were expecting the US Central Bank to cut interest rates in June. There was a little turbulence at the beginning of the year that, in a way, caused some turbulence in all markets. The dollar went up here, but I think now [o Fed] must enter a path of cuts. I think this will be long-lasting,” declared Haddad upon leaving the Ministry of Finance.
According to Haddad, the start of interest rate cuts in the United States will bring more predictability to the global economy and prevent volatility in the financial market in the coming years. “I don’t believe that in 2025, 2026, we will have any surprises. Which is great for Brazil and for the world. Because this provides great relief at home and places a responsibility on us to continue to do the work of putting our house in order here to reap the benefits of these favorable winds,” concluded the minister.
Copom
Regarding the decision of the Monetary Policy Committee (Copom) to raise the Selic Rate – basic interest rates of the economy – to 10.75% per year, Haddad did not want to make any comments. He only said that the increase of 0.25 points did not surprise him.
“I wasn’t surprised [com o Copom]but I will only comment on the decision after reading the minutes, next week, as usual. I will take a look, I will talk internally, I will check what to expect for the near future”, he explained.
Until the middle of last year, Haddad commented on Copom’s decisions, criticizing the Central Bank’s delay in starting to reduce interest rates and the tone of some announcements. When the monetary authority began to reduce the Selic rate, in August last year, the minister celebrated the decision.
