Powell Hints at Possible Rate Cuts Amid Improved Economic Conditions

IconCryptoNewsTerminal Staff31 Jul, 2024

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Powell Hints at Possible Rate Cuts Amid Improved Economic Conditions

Jerome Powell, the chairman of the Federal Reserve, hinted at the possibility of easing interest rates in the future due to improving economic conditions. During a press conference following the FOMC meeting, Powell acknowledged that inflation remains a concern, but also emphasized the need to consider other factors. "We don't need to be 100% focused on inflation," Powell said. "We have circumstances in which we can move toward a more accommodative policy." Powell's comments suggest that the Fed may be considering a more dovish stance, which could lead to lower interest rates in the future. This would be a significant shift from the Fed's previous policy of raising rates to combat inflation. However, Powell also cautioned that the Fed has not completed its job on inflation and that any easing of policy will be gradual. He emphasized that the Fed's goal is to achieve a "soft landing" for the economy, avoiding both a recession and high inflation.

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