Powell Says 'Time Has Come' for Fed to Cut Interest Rates.

POWELL, Jerome H., 1953-; CONSUMPTION (Economics); BOARD of Governors of the Federal Reserve System (U.S.); ECONOMIC statistics; EMPLOYMENT statistics; FINANCIAL market reaction; LABOR market; INFLATION targeting

Federal Reserve Chair Jerome Powell has stated that it is time for the central bank to cut its key policy rate, indicating that interest rates will likely be lowered next month. Powell emphasized the importance of preventing further cooling in the labor market and expressed confidence that inflation is on track to reach the Fed's target of 2%. While the speech provided some clarity for financial markets in the short term, it did not offer much insight into the Fed's plans beyond its September meeting. The remarks suggest that the Fed is at a turning point in its efforts to balance inflation and a strong labor market. [Extracted from the article]

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