2024-07-10 00:04:33
Economy
Finance

Federal Reserve's Powell Signals Potential Rate Cuts Amid Economic Concerns

Federal Reserve Chair Jerome Powell has cautioned Congress about the risks of maintaining high interest rates for too long, highlighting the threat to economic growth and job opportunities. Powell's focus on balancing policy to prevent weakening economic activity and employment comes as the US job market cools and inflation remains elevated.

Recent data indicating slowing job growth and persistently high prices has led to speculation that the Fed may be nearing a decision to cut interest rates. Analysts are now predicting the possibility of up to three rate cuts this year, driven by rising unemployment and falling inflation, urging the Fed to act sooner rather than later to address economic strains.

As the unemployment rate in the US nears a key recession indicator, the pressure on the Federal Reserve to cut rates increases, with odds of a September rate cut standing at 72%. Powell's emphasis on the need for 'more good data' before a rate cut underscores the central bank's cautious approach amid cooling inflation pressures and weakening job market indicators.

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The Guardian
9. Juli 2024 um 15:03

Cutting interest rates ‘too late or too little’ could hit jobs, Fed chair warns

Economy
Finance
Politics
Federal Reserve Chair Jerome Powell warned Congress that holding interest rates too high for too long could threaten economic growth and jobs. He signaled that while suppressing inflation remains a priority, policymakers are now focusing on when to cut rates. Powell noted that the US is no longer an overheated economy and the job market has cooled, but elevated inflation is not the only risk they face. He emphasized the need to balance reducing policy restraint to avoid weakening economic activity and employment.
Yahoo Finance
9. Juli 2024 um 14:01

Fed's Powell highlights slowing job market in signal that rate cuts may be nearing

Economy
Finance
Politics
Federal Reserve Chair Jerome Powell highlighted a cooling job market and persistently high prices in his testimony to the Senate Banking Committee, signaling that the Fed may be moving closer to cutting interest rates. Powell noted that 'elevated inflation is not the only risk we face' and that cutting rates 'too late or too little could unduly weaken economic activity and employment'. The Fed has raised rates 11 times since March 2022 to fight inflation, but Powell's comments suggest the central bank is shifting its focus towards supporting economic growth.
Inc.com
9. Juli 2024 um 14:33

Fed Chair's Senate Testimony Could Show Path to Rate Cut

Economy
Finance
Politics
Federal Reserve Chair Jerome Powell's upcoming Senate testimony is expected to provide insights into the central bank's plans for interest rate cuts. Recent data shows slowed inflation and a weakening job market, leading to speculation that the Fed may accelerate its plans to cut rates. Powell's comments will be closely watched for signs that the Fed is ready to cut rates, potentially as soon as September, as it balances the risks of high inflation and an economic slowdown.
Yahoo Finance
9. Juli 2024 um 14:41

INSTANT VIEW-Fed's Powell: "More good data" will "strengthen" case for rate cut

Economy
Finance
Politics
Federal Reserve Chair Jerome Powell stated that "more good data" would "strengthen" the case for interest rate cuts, as inflation remains above the Fed's 2% target but has been improving in recent months. Powell also expressed concerns about risks to the job market and economy if rates remain too high for too long. Analysts believe Powell's comments suggest the foundations are being laid for a potential rate cut in September, though he did not provide a definitive timeline.
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