Jerome Powell, the man in charge of the Federal Reserve, has addressed the public directly moments after his decision to slash interest rates by 50 basis points.
At the post-FOMC presser, Powell told us that he trust the decision he made, and that it wasn’t because the economy is doing worse than economists think.
He reiterated what he has been saying for months, which is that the policy committee will continue making its decisions meeting by meeting, and going data by data.
Powell added that his entire team supported the 50 bps cut. He also addressed the possibility of more cuts. According to him, most in the committee are also all for the idea of 2 or 3 more cuts before 2024 runs out.
He declined to give a specific timeline or even pace of the incoming cuts though.
“We remain squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people,” Powell stated.
Inflation has dropped from 7 percent at its peak to a more manageable 2.2 percent as of August. The Fed is now working to push inflation down even further, closer to its target of 2 percent.
Despite the cooling labor market, Powell assured that it’s not a major source of inflationary pressure. Wage growth has slowed, and the jobs-to-workers gap has narrowed.
According to the Summary of Economic Projections (SEP), the unemployment rate is expected to rise slightly to 4.4 percent by the end of the year.
This is a developing story
