WASHINGTON – Federal Reserve Chair Jerome Powell hinted at the possibility of more interest rate cuts on the horizon, signalling a cautious approach to support the stability of the economy. Powell made these remarks at a conference of the National Association for Business Economics in Nashville, Tennessee, setting the expectations for investors and financial markets.
The recent rate cuts by the Fed didn’t meet the hopes of some investors as it was not as drastic as anticipated. Powell emphasized that any future cuts would be dependent on economic data and the pace at which they are implemented, suggesting a measured and strategic approach.
The stock market reacted with a slight decline following Powell’s comments, indicating a cautious response from investors. Powell reiterated that the Fed’s goal is to recalibrate interest rates rather than make rapid emergency cuts, highlighting the aim of maintaining a healthy economy and job market.
Powell’s remarks underscored the current strength of the U.S. economy, with a focus on supporting growth and stability. The Fed’s plan for gradual rate reductions reflects confidence in maintaining a balance between economic growth and inflation targets.
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