Fed Chair hints at possible rate cuts

US Federal Reserve Chair Jerome Powell on Friday morning (ET) signaled that the Fed might lower interest rates in September. However, he did not specify the exact amount of the potential cuts.

“Overall, the economy continues to grow at a solid pace. But the inflation and labour market data show an evolving situation. The upside risks to inflation have diminished. And the downside risks to employment have increased. As we highlighted in our last FOMC statement, we are attentive to the risks to both sides of our dual mandate.
“The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks,” said Powel in his prepared keynote speech at an annual gathering of central bankers and economists in Jackson Hole, Wyoming.

Attribution: The US Federal Reserve