Powell: Interest Rate Changes Depend on “All the Evidence,” Timing Is Key
According to a report by Jinse Finance, when asked what the Federal Reserve needs to see in the data before making a decision to cut interest rates, Fed Chair Jerome Powell stated that it will depend on the “full body of evidence” between now and the next meeting in September. Powell said, “We have not made any decisions regarding September yet.” If the Fed believes that the risks to its dual mandate are fully balanced, this would mean adopting a more neutral stance, as restrictive policy supports the Fed’s inflation target. If the Fed adjusts rates before inflation issues are resolved, it would result in a waste of resources; however, if the adjustment comes too late, it could harm the labor market. He emphasized that the key is to “get the timing right.”
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