According to TechFlow, Federal Reserve Chairman Powell said at a press conference after the FOMC meeting that the Federal Reserve will continue to focus on its dual missions, and employment and inflation risks are entering a better balance.
Significant progress has been made on both employment and inflation targets over the past two years, and the labor market has become more balanced.
The second quarter inflation data has strengthened the Fed's confidence, but greater confidence in inflation is still needed. Powell pointed out that if the economy remains solid, interest rates will remain unchanged as needed; if the labor market is unexpectedly weak, it is prepared to take countermeasures.
He stressed that cutting interest rates too early could reverse the improvement in inflation, but the Fed is gradually approaching the time when it can lower interest rates.
Regarding the September rate cut, Powell said it "may be under consideration", but the Fed has not yet made any decision on the September meeting. The rate cut will depend on the improvement in confidence in inflation. If inflation falls as expected and the labor market remains stable, the September rate cut may occur.
Powell also revealed that there was indeed an in-depth discussion about interest rate cuts at this meeting, and some members discussed the possibility of taking interest rate cuts at this meeting, but the overall feeling of the committee was that if the data supported it, action would be taken at the next meeting, not at this meeting.
