Fed Chair Powell Signals Steady Approach Amid Broad Disinflation
Federal Reserve Chair Jerome Powell indicated that the U.S. economy is on track for a slowdown in inflation, allowing the Fed to gradually reduce interest rates. Speaking at a business conference, Powell emphasized a data-driven approach and avoided specific timelines for rate cuts, highlighting ongoing economic resilience and steady job growth.
Federal Reserve Chair Jerome Powell indicated on Monday that the U.S. economy appears poised for a continued slowdown in inflation, setting the stage for gradual interest rate cuts. Speaking at a National Association for Business Economics conference in Nashville, Tennessee, Powell highlighted broad-based disinflation and the Fed's data-driven approach to monetary policy.
'If the economy evolves broadly as expected, policy will move over time toward a more neutral stance,' Powell noted, cautioning that the Federal Reserve is not on a predetermined course. He emphasized that the central bank's decisions on rate cuts will be made on a meeting-by-meeting basis.
The Federal Open Market Committee recently lowered its policy rate, and economic projections suggest further reductions through 2025. Investors remain divided on the pace of cuts, but Powell reassured that the job market and overall economic conditions remain strong, supporting the Fed's cautious strategy.
(With inputs from agencies.)
ALSO READ
Canadian Households Under Pressure Despite Interest Rate Cuts
Fed Rate Cuts: A Beacon of Hope for American Economy
Euro Zone Bonds React to Anticipated Rate Cuts Amid Global Central Bank Meetings
U.S. Economy Turns Corner on Inflation, Lael Brainard Declares
Argentina's Economy Faces Fifth Quarterly Decline Amid Austerity