⬇️ The Fed cut its key rate by 50 basis points to 4.75-5% for the first time since 2020 (previously 5.25-5.5%)
🗣 The main points from J. Powell's speech:
◾️ The decision shows growing confidence that stability in the labour market can be maintained.
◾️ Inflation has fallen significantly, but remains above target.
◾️ We expect stable GDP growth.
◾️ The risks of rising inflation have decreased.
◾️ Risks of worsening employment situation have increased
◾️ We can cut rates faster or slower, or take a break, it all depends on the economy
◾️ Most FOMC chairs supported a 50 bp cut.
◾️ No one should think this is a new rate of decline when looking at today's rate decision.
◾️ We want to keep the economy strong. Retail sales and GDP for the second quarter show steady economic growth, this will support the labor market.