• Fri. Apr 19th, 2024

Fed Chairman Jerome Powell Confirms Rate Cuts are Possible in 2024, but No Immediate Action Required Yet”.

BySamantha Johnson

Mar 6, 2024
This Year, Powell Insists They Will Come

Federal Reserve Chairman Jerome Powell reiterated on Wednesday that the central bank will indeed be cutting interest rates this year. Despite the Fed’s desire for inflation to cool further, hitting the 2% target is not necessary before rate cuts are implemented. Powell dismissed skeptics who have been questioning the possibility of rate cuts this year. The central bank will continue to monitor data and inflation trends before making any decisions on lowering interest rates.

During a Q&A session with the House Financial Services Committee, Powell mentioned that the Fed is carefully assessing incoming data, the economic outlook, and risks involved before making any moves. The goal is to gain confidence that inflation is moving towards 2% sustainably before reducing the target range. The S&P 500 reacted positively to Powell’s comments, reaching intraday highs and closing up around 0.5% for the day.

Powell clarified that the Fed does not need inflation to drop to 2% before considering rate cuts. Rather, they are looking for more evidence that inflation is on a sustainable path towards the target. The focus is on upcoming CPI data set for release on March 12, which will provide more insights into inflation trends. Contrary to some bearish predictions circulating on Wall Street, Powell’s remarks suggest that rate cuts are still on the table for 2024.

In contrast to forecasts that there may be no rate cuts in 2024, Powell’s comments indicate that the central bank is still considering lowering interest rates. The Fed remains cautious and is closely monitoring economic data to make informed decisions regarding future rate adjustments. By emphasizing the importance of sustainable inflation trends, Powell aims to provide clarity on the Fed’s approach to managing monetary policy in the coming months.

Powell also explained how changes in interest rates can affect various sectors of the economy differently and highlighted concerns about rising global debt levels and trade tensions between major economies such as China and US.

Overall, Powell’s remarks suggest that while there may be some uncertainty surrounding future rate adjustments, it appears likely that interest rates will continue to decrease over time as long as economic conditions remain favorable.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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