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Powell: Fed's 50 Basis Point Rate Cut a Strong Move to Stay Ahead of Economic Challenges

Sep 18, 2024, 06:51 PM

Federal Reserve Chair Jerome Powell announced a significant 50 basis point interest rate cut, emphasizing it as a proactive measure to prevent economic weakness rather than a response to current conditions. Powell reiterated that the Fed does not believe it is behind the curve and views the rate cut as a demonstration of its commitment to staying ahead of potential economic challenges. The move is part of a broader strategy to recalibrate monetary policy to a more neutral stance. Powell described the rate cut as a 'strong move' and 'timely.'