FED Chairman Jerome Powell makes critical statements about interest rate cuts and the US economy in his planned speech.
Here are all the details of Powell’s speech:
- Job growth appears too weak to keep the unemployment rate steady.
- If the policy is too strict, it may unduly affect the labor market.
- Businesses say the uncertainty is negatively impacting their outlook.
- Price pressures from tariffs may be “short-lived” and “will not happen overnight.”
- There has been an unusual and severe decline in labor supply and demand.
- The monetary policy stance remains moderately tight and we are well positioned to respond to potential developments.
- There is no “risk-free path” for the Fed.
- Inflation remains high.
- The interest rate cut is a step towards a more neutral monetary policy stance.
- Two-way risks show that there is no risk-free path and that policies do not follow the set course.
- We must continue to focus on completing our core tasks.
- Public trust in economic and political institutions is being questioned.
- Fed is in “good position” after September rate cut.
- The overall impact of significant federal policy changes is “not yet clear.”
- Economic growth has slowed and downside risks to employment have increased.
- Easing policy too quickly could cause the “fighting inflation mission to fail.”
*This is not investment advice.