The US Federal Reserve Governor makes very important statements about cutting interest rates!
December 4, 2024
The US Federal Reserve Chairman, Jerome Powell, confirmed during his participation in the "Dealbock" summit organized by the New York Times, that the US economy is in an exceptional state, noting that the world looks at it with great admiration and considers it a model of stability and flexibility, and that he will do whatever is necessary to maintain the stability of the US economy and enhance its strength.
Powell said he was very comfortable with the current monetary policy stance, stressing his confidence in the Fed's ability to strike a balance between supporting economic growth and controlling inflation.
The Fed Chairman also noted that the economy is performing well, supported by strong growth and employment data, reflecting its ability to meet challenges. Powell also reassured markets about the continuity of the institutional relationship between the Fed and the Treasury, and that these relations will remain stable even with the new US administration.
Jerome Powell also stressed that the independence of the central bank is a fundamental element in its work, noting that one manifestation of this independence is its reliance on financing itself without the need for external financial support. The rest of Powell’s statements are as follows:
The US Federal Reserve is on a path to achieving more neutral interest rates over time.
The risks of an economic slowdown appear lower than previously expected, giving the US Federal Reserve enough room to exercise caution in setting the appropriate level of neutral rates that support economic stability.
Growth was strong in September, and inflation was moderately high.
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