Live Blog: Powell Says Pace of Future Interest Rate Cuts to Depend on U.S. Economy

Luzi Ann Santos joined discussion · Sep 19, 2024 02:37

3:14 p.m. New York time

Federal Reserve Chairman Jerome Powell said the pace of future interest rate cuts will depend on how the U.S. economy performs.

"We expect that process to take time as you can see in the projections we release today," Powell said in a press conference after a two-day meeting of the Federal Open Market Committee. "We can't look a year ahead and know what the economy will be doing."

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3:25 p.m. New York time

Federal Reserve Chairman Jerome Powell said insulating the central bank from political authorities allows policymakers to take appropriate steps to slow inflation and serve their people.

"I think the data are clear that countries that have independent central banks get lower inflation and so we're not -- we do our work to serve all Americans," Powell said at a press conference. "We're not serving any politician, any political figure, any cause, any issue, nothing. It's just maximum employment and price stability on behalf of all Americans."

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3:07 p.m. New York time

Federal Reserve Chairman Jerome Powell said policymakers aim to keep the U.S. economy expanding at a solid pace, while slowing inflation closer to their 2% target over time, and keeping the labor market in good place when they opted for a 50-basis point cut in federal funds rate.

"Our intention is really to maintain the strength that we currently see in the U.S. economy, and we'll do that by returning rates from the high level which has really been the purpose to get inflation under control," Powell said.

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3:00 p.m. New York time

Federal Reserve Chairman Jerome Powell said policymakers will continue to monitor economic data for clues on the pace of future interest rate cuts after a 50-basis point reduction Wednesday.

"We'll get all this data and we'll be watching," Powell said in a press conference after a two-day meeting of the Federal Open Market Committee. "It is always a question of looking at the incoming data and asking what the implications of that data for the evolving outlook and balance of risks. And going through the process and thinking what is the right thing to do. Is policy where we want it to be to foster the achievement of our goals over time. That's what it is and that's what we'll be doing."

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2:45 p.m. New York Time

Federal Reserve Chairman Jerome Powell said policymakers' decision to cut the target federal funds rate by half a percentage point reflects their growing confidence that the "strength in the labor market can be maintained."

Speaking to reporters after a two-day meeting by the Federal Open Market Committee, Powell noted that economic activity has continued to expand at a solid pace. The interest rate was cut to a range of 4.75% to 5%.

"The labor market is not a source of elevated inflationary pressures," he said. "As inflation has declined in the labor market has cooled, the upside risks have diminished, and the upside has increased. We now see our inflation goals have imbalanced and tentative to dual risks to dual mandate."

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