Fed has kept the interest rate steady at 5.50%. Jerome Powell spoke at a forum organized by the European Central Bank. Powell stated that significant progress had been made in reducing inflation towards the 2% target but emphasized that they would not rush to lower interest rates. He stressed the need to be confident that inflation was on a sustainable downward path before easing monetary policy. #US_Job_Market_Slowdown
Powell highlighted the importance of maintaining a strong labor market and mentioned that an unexpected weakening could require a policy response. While he avoided giving a specific timeline for a potential rate cut in September, he noted that acting too soon could undermine efforts to control inflation, whereas acting too late could unnecessarily hinder economic growth. #Babylon_Mainnet_Launch
Since March 2022, the #Fed has raised interest rates by more than five points and has kept them steady since July. Powell indicated that if economic data continues to be favorable, the Fed might consider easing policy restrictions later this year, but they need to gain more confidence in the sustainability of the inflation decline.
