Fed Chair Powell Signals Possible Rate Adjustment
(MENAFN) Federal Reserve Chair Jerome Powell alluded to a potential interest rate decrease, stating: "With policy in restrictive territory, the baseline outlook and shifting balance of risks may warrant adjusting our policy stance."
During his remarks at the Jackson Hole symposium, Powell emphasized that inflationary pressures remain elevated, while near-term employment concerns are growing, presenting a complex challenge.
The gathering, organized by the Federal Reserve Bank of Kansas City, has been an annual tradition since 1978 and is scheduled this year from August 21 to 23.
“When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate,” Powell further stated.
He noted that the current interest rate level is now 100 basis points nearer to neutral compared to the previous year, and the continued steadiness in job market indicators provides space for measured decision-making regarding future rate moves.
Powell also underscored that monetary policy isn’t predetermined, explaining that members of the Federal Open Market Committee will base their actions entirely on a thorough analysis of available data and its implications for the economy and risk balance, emphasizing: "We will never deviate from that approach."
Addressing trade measures, he acknowledged that tariffs are now evidently impacting consumer costs, observing: "Turning to inflation, higher tariffs have begun to push up prices in some categories of goods."
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