Fed chair Powell says the time's come for policy to adjust, indicating rate cuts in near future
US Federal Reserve Chair on Friday said the time has come for the central bank policy to adjust, indicating rate cuts anytime in the near future.
«The upside risks to inflation have come down,» Powell said while addressing the Jackson Hole Symposium.
Powell's speech comes after three Fed officials said they wanted to see more data before agreeing to a rate cut. Most analysts expect the reduction of a quarter-percentage-point but some traders hope for as much as half a point.
Powell said the US labour market cooling is unmistakable and is no longer overheated. «The balance of risks to our mandates has changed,» he said.
US data released this week showed a rise in jobless claims and a cooler-than-expected labour market.
Following the pandemic, the Fed has kept its rates at a 23-year high after raising them in efforts to combat inflation. Meanwhile, central banks in Europe have started their cuts.
The recent Minutes from the Fed’s July 30-31 meeting released showed that a «vast majority» of officials said a September cut was likely.
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