Fed Chair Powell Signals September Rate Cuts at Jackson Hole

Aug 23, 2024, 02:14 PM

Federal Reserve Chair Jerome Powell, in his address at the Jackson Hole conference, indicated that the central bank is poised to begin cutting interest rates, potentially as soon as September. Powell emphasized that the timing and pace of these rate cuts will depend on incoming economic data, the evolving outlook, and the balance of risks. He expressed confidence that inflation is on a sustainable path back to the Fed's 2% target and noted that the labor market, while cooling, is no longer overheated. Powell stressed the importance of maintaining a strong labor market and stated that further cooling is not desired. The interest rate is currently at a 23-year high.