Powell: Fed Needs 'More Good Data' To Feel Comfortable About Cutting Interest Rates

Federal Reserve (Fed) Chairman Jay Powell emphasized in yesterday's (July 9) testimony before the Senate Banking Committee that the central bank needs more "good data" to feel comfortable. comfortable with interest rate cuts. He said inflation numbers had made "modest progress" and more data was needed to bolster confidence that inflation was approaching 2%.

Speech Before Congress 🏛️
Powell will continue testifying before the House Financial Services Committee on Tuesday in his twice-yearly mandatory testimony.

Labor Market 💼
The labor market has slowed significantly, with the unemployment rate rising 0.1% for the second consecutive month to 4.1%.

Inflation 📉
Inflation is expected to hold steady at 3.4% in June.
Powell is optimistic about inflation moving closer to deflation, with inflation figures from April and May.

Interest Rate Decision 📈
- The Fed will make monetary policy decisions at each meeting.
The inflation outlook was raised to 2.8% from 2.6% and the forecast for three rate cuts this year was reduced to one.
- Investors are betting on a more than 70% chance that the Fed will start cutting interest rates in September.

Powell also stressed that cutting interest rates too quickly could reverse the progress of disinflation, while keeping interest rates high for too long could weaken the economy and the job market.

Hope this newsletter is interesting and informative!

Source: 🔥Crypto Analysis ⚡️⚡️
https://t.me/cryptoanalysisvn/1/1771


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