Fed Chief Jerome Powell Signals Steady Rate Cuts Amid Economic Growth

Federal Reserve Chair Jerome Powell announced the central bank's intention to continue gradual quarter-percentage-point interest rate cuts to maintain economic growth and consumer spending. Despite recent larger cuts, he stated the Fed is not in a hurry and will make decisions based on incoming data to keep inflation on target and unemployment low.

Federal Reserve Chair Jerome Powell indicated on Monday that the U.S. central bank would likely stick with quarter-percentage-point interest rate cuts moving forward, buoyed by new data that boosted confidence in ongoing economic growth and consumer spending.

Addressing a National Association for Business Economics conference, Powell emphasized that the Federal Open Market Committee is not in a rush to cut rates quickly, even though it began its easing cycle with a larger-than-expected half-percentage-point reduction at its Sept. 17-18 meeting.

As Powell spoke, financial markets adjusted their expectations, betting more heavily on gradual rate cuts through the middle of next year. The final decision will hinge on future economic data, including upcoming employment reports. Stocks dipped slightly after Powell's comments, though major indices ended the day higher, and U.S. Treasury yields increased.

(With inputs from agencies.)