Fed Chair Powell Signals Imminent Interest Rate Cuts
Publication Time:2024-08-23 22:20:09
In his latest remarks, Federal Reserve Chairman Powell clearly signaled to the market an imminent interest rate cut. He stated that the Federal Reserve plans to use rate cuts to avoid further deterioration of the U.S. labor market and maintain economic stability and employment growth. Powell emphasized that the current economic situation requires the Fed to take action to prevent further decline in labor market conditions. This statement contrasts sharply with previous monetary policy stances, signaling that the Federal Reserve may be on the verge of an unprecedented rate-cutting action in history. The market widely expects the Federal Reserve to officially announce the interest rate cut decision at its September meeting. Powell's remarks mark the end of the Federal Reserve's fight against inflation, which contrasts sharply with his argument two years ago at the same venue that it was willing to sacrifice economic growth to achieve stable inflation. At that meeting, Powell had expressed willingness to accept the risk of economic recession to reach the goal of lowering inflation. However, this time his attitude is more resolute and clear, indicating that he has obtained sufficient economic data to support his decision to cut interest rates.
Federal Reserve
Powell
Interest Rate Cut
labor market