• The Informer Post
  • Posts
  • Fed’s Jerome Powell Dampens Hope for Big Rate Cut This Year, Says Policy To Move Toward Neutral Stance

Fed’s Jerome Powell Dampens Hope for Big Rate Cut This Year, Says Policy To Move Toward Neutral Stance

October 02, 2024

U.S. Federal Reserve Chair Jerome Powell anticipates future monetary policy will evolve into a more “neutral stance.”

While speaking at an economics event in Nashville earlier this week, Powell said the economy looks “strong overall.”

He noted there were roughly equal levels of risk associated with the Fed’s goals of reducing inflation and keeping the labor market strong.

“Our decision to reduce our policy rate by 50 basis points reflects our growing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate economic growth and inflation moving sustainably down to 2 percent.

Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course. The risks are two-sided, and we will continue to make our decisions meeting by meeting. As we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks. Overall, the economy is in solid shape; we intend to use our tools to keep it there.

Last month, the Fed cut interest rates for the first time since March 2020. The US inflation rate in August was 2.5%.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney