Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Tuesday, July 1
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Finance»Fed’s Powell says ‘time has come’ to begin cutting interest rates
    Finance

    Fed’s Powell says ‘time has come’ to begin cutting interest rates

    August 23, 20243 Mins Read


    Federal Reserve Chair Jerome Powell sent a straightforward message to markets in a key speech on Friday, saying “the time has come” for the central bank to begin lowering interest rates.

    Speaking at the Kansas City Fed’s annual economic symposium in Jackson Hole, Powell said: “The time has come for policy to adjust.”

    “The direction of travel is clear,” Powell added, “and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

    Powell’s speech comes just over three weeks out from the Fed’s Sept. 17-18 meeting, which should see the central bank announce its first interest rate cut since 2020.

    Powell acknowledged recent softness in the labor market in his speech and said the Fed does not “seek or welcome further cooling in labor market conditions.”

    The July jobs report rattled markets earlier this month, revealing there were just 114,000 jobs added to the economy last month while the unemployment rate rose to 4.3%, the highest since October 2021. Data earlier this week also showed that 818,000 fewer people were employed in the US economy as of March, suggesting reports have been overstating the strength of the job market over the last year.

    “It seems unlikely that the labor market will be a source of elevated inflationary pressures anytime soon,” Powell said.

    Ahead of Powell’s speech, investors had priced in nearly 100% odds the Fed would lower rates next month, with odds on a cut of 0.25% vs. 0.50% standing at roughly two to one.

    “Four and a half years after COVID-19’s arrival, the worst of the pandemic-related economic distortions are fading,” Powell said.

    “Inflation has declined significantly…Our objective has been to restore price stability while maintaining a strong labor market, avoiding the sharp increases in unemployment that characterized earlier disinflationary episodes when inflation expectations were less well anchored. While the task is not complete, we have made a good deal of progress toward that outcome.”

    Powell’s remarks on Friday were reminiscent of those he delivered at Jackson Hole in 2022, in which the Fed chair offered a direct assessment of the economic outlook and, at the time, the need for additional rate increases.

    FILE PHOTO: Jerome Powell, chair of the Federal Reserve walks in Teton National Park where financial leaders from around the world gathered for the Jackson Hole Economic Symposium outside Jackson, Wyoming, U.S., August 26, 2022. REUTERS/Jim UrquhartFILE PHOTO: Jerome Powell, chair of the Federal Reserve walks in Teton National Park where financial leaders from around the world gathered for the Jackson Hole Economic Symposium outside Jackson, Wyoming, U.S., August 26, 2022. REUTERS/Jim Urquhart

    Jerome Powell, chair of the Federal Reserve walks in Teton National Park where financial leaders from around the world gathered for the Jackson Hole Economic Symposium outside Jackson, Wyoming, U.S., August 26, 2022. REUTERS/Jim Urquhart (Reuters / Reuters)

    “At this podium two years ago, I discussed the possibility that addressing inflation could bring some pain in the form of higher unemployment and slower growth,” Powell said.

    “Some argued that getting inflation under control would require a recession and a lengthy period of high unemployment. I expressed our unconditional commitment to fully restoring price stability and to keeping at it until the job is done.”

    Friday’s speech more or less suggests that job is indeed done.

    “All told, the healing from pandemic distortions, our efforts to moderate aggregate demand, and the anchoring of expectations have worked together to put inflation on what increasingly appears to be a sustainable path to our 2 percent objective,” Powell said.

    Click here for the latest economic news and indicators to help inform your investing decisions

    Read the latest financial and business news from Yahoo Finance



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleHow Do US Elections Affect the Stock Market?
    Next Article Fairbanks City Council to revisit postponed property ordinances | Local News

    Related Posts

    Finance

    Sargasses en Martinique : l’État finance 25 postes pour faire face à une crise sans précédent

    July 1, 2025
    Finance

    le petit Mozart du rugby devenu prince de la finance

    June 30, 2025
    Finance

    «Il est inacceptable que l’Union européenne finance des ONG qui promeuvent un islam politique opposé à nos valeurs» – Libération

    June 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Action Ganglong China Property Group Limited | Cours 6968 Bourse Hong Kong S.E.

    July 31, 2007

    les fondamentaux de l’or restent bons

    September 4, 2007

    les fondamentaux de l’or restent bons

    September 4, 2007
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Bitcoin

    Les principales cryptomonnaies chutent ; le bitcoin s’échange autour du niveau de 94 000 $. -Le 18 février 2025 à 22:06

    February 18, 2025
    Bitcoin

    US government moves $2 billion in Bitcoin, price dips 1.3%

    July 29, 2024
    Investing

    Bitcoin vs Gold – Where Is It Better to Invest Your Money?

    October 20, 2024
    What's Hot

    Chinese citizens grapple with Florida law that bars them from buying property

    June 17, 2024

    Investors de-risking both long and short bets as Fed, tech earnings loom- Citi By Investing.com

    July 30, 2024

    ces entreprises françaises qui brillent grâce au bitcoin

    March 5, 2025
    Most Popular

    Le portefeuille industriel de Garda Property Group à Brisbane à l’abri du cyclone Alfred -Le 11 mars 2025 à 05:25

    March 10, 2025

    K33 réalise une émission d’actions ciblée et lève 125 millions de couronnes pour investir dans le Bitcoin

    June 22, 2025

    Canal+ boss has ‘no regrets’ about listing on the London stock market despite share price crash

    March 4, 2025
    Editor's Picks

    China’s Retaliatory Tariffs Against Trump Are All Bark No Bite, Experts Say – IJR

    February 10, 2025

    Daupler Raises $15 Million Series B to Help Utilities Automate Real-time Incident Response Management

    March 6, 2025

    Should Nvidia Investors Be Nervous About This Red Flag?

    October 27, 2024
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.