According to Odaily: Federal Reserve Chairman Jerome Powell recently indicated a potential shift in monetary policy, stating that while the Fed plans a gradual pace of rate cuts over the next few years, it could reverse course if inflationary pressures reemerge. This comes as the Oxford Economics Institute projects that by 2028, policies implemented under former President Trump could elevate inflation by approximately 0.3 percentage points, while Vice President Harris' policies could increase inflation by about 0.2 percentage points and push house prices up by 0.5 percentage points.
Powell's latest remarks, delivered on August 23, suggest that while the Fed is currently inclined to lower rates, it remains vigilant. Should inflation return, the central bank could halt rate cuts or even consider raising rates again to maintain economic stability. This cautious approach underscores the Fed's commitment to its dual mandate of controlling inflation and supporting employment.
