Powell indicated the Fed was edging closer to a rate cut; but did not say inflation had been beaten
WASHINGTON – Federal Reserve Chair Jerome Powell said on Wednesday the US central bank will make interest rate decisions "when and as" they are needed, pushing back on a suggestion that a September rate cut could be seen as a political act ahead of the fall presidential election.
The state of the economy, and particularly the surge in housing, food and other costs in recent years, has been a potent issue for Republicans given public sentiment that remains sour given the high price of many items even as inflation itself has slowed. Rate cuts initially expected early this year were pushed back after inflation proved stickier than expected, with the Fed's monetary policy debate now lined up squarely with the fall campaign.
Republicans focused on the conditions that would warrant lower rates and encouraged Powell to not move until inflation was beaten; Democrats tried to draw him out on issues like proposals by a Republican-aligned group, called Project 2025, to overhaul and potentially weaken the Fed, and cited their concerns about rising unemployment.
"There is a path to getting back to full price stability while keeping the unemployment rate low," Powell said. "We're on it. We're very focused on staying on that path." The Fed next meets on July 30-31. While officials are expected to maintain the benchmark interest rate at the comparatively high 5.25% to 5.5% range approved in July of 2023, further progress on inflation could lead to key changes in their policy statement that pave the way for a September cut.
پاکستان تازہ ترین خبریں, پاکستان عنوانات
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