Federal reserve Chair says change in monetary policy may be on horizon
(MENAFN) Federal Reserve Chair Jerome Powell signaled that a shift in monetary policy may be approaching, suggesting a potential interest rate cut. "With policy in restrictive territory, the baseline outlook and shifting balance of risks may warrant adjusting our policy stance," he said during his remarks at the annual Jackson Hole symposium.
Powell acknowledged the challenge of addressing opposing economic risks, noting that inflation pressures remain elevated while the labor market faces vulnerabilities in the near term.
"When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate," he explained.
The Fed chair highlighted that the central bank’s policy rate is now much closer to a neutral level compared to a year ago. He pointed out that steady unemployment figures and broader labor market stability give policymakers room to carefully weigh any adjustments.
He stressed that the Federal Reserve is not locked into a predetermined course. Decisions, he said, will be made only after evaluating economic data and its implications, emphasizing: "We will never deviate from that approach."
On the topic of tariffs, Powell noted their impact is increasingly visible, particularly in consumer prices. "Turning to inflation, higher tariffs have begun to push up prices in some categories of goods," he said.
According to his estimates, Personal Consumption Expenditures (PCE) prices climbed 2.6% over the twelve months ending in July, while core PCE prices rose 2.9%, marking an increase from last year’s figures.
The symposium, hosted by the Kansas City branch of the Federal Reserve, has been an annual event since 1978 and this year runs from August 21 to 23.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
