Fed Chair Signals September Rate Cuts If Economic Data Warrants

IconCryptoNewsTerminal Staff31 Jul, 2024

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Fed Chair Signals September Rate Cuts If Economic Data Warrants

Federal Reserve Chairman Jerome Powell has indicated that the central bank is considering interest rate cuts as early as September if economic data supports such a move. During his post-Federal Open Market Committee (FOMC) press conference, Powell stated that "there was some discussion at this meeting about whether to cut rates, and the general sentiment around the table was that we would be more likely to act at the next meeting rather than this one if the data supports that." Powell's comments come amid growing concerns about a potential economic slowdown. Recent data has shown a decline in business investment and consumer spending, raising fears that the economy may be losing momentum. The Fed is responsible for managing inflation and economic growth, and it can use interest rate cuts to stimulate the economy when necessary. While a rate cut in September is not guaranteed, Powell's remarks suggest that the Fed is becoming more open to the possibility. Investors will be closely watching economic data in the coming weeks for any signs of further weakness that could justify a rate cut.

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