Federal Reserve Chair Jerome Powell said Monday that the central bank will not wait until inflation hits 2% to cut interest rates.
Speaking at the Economic Club of Washington D.C., Powell referenced the idea that central bank policy works with “long and variable lags” to explain why the Fed wouldn’t wait for its target to be hit. “The implication of that is that if you wait until inflation gets all the way down to 2%, you’ve probably waited too long, because the tightening that you’re doing, or the level of tightness that you have, is still having effects which will probably drive inflation below 2%,” Powell said.
” Monday was Powell’s first public speaking appearance since the Consumer Price Index report for June showed cooling inflation, with prices actually falling month over month. Powell said at the beginning of his appearance that he was not intending to make any signals about when the Fed might start to cut interest rates. The central bank’s next policy meeting is at the end of July.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed's Jerome Powell Delivers Essential Message for Crypto Investors: DetailsJerome Powell makes key remarks with implications for cryptocurrencies
Read more »
Watch Fed Chair Jerome Powell's remarks on interest rate policy and the economyThese will be Powell’s first remarks since the June CPI report showed inflation cooling.
Read more »
Federal Reserve Chair Jerome Powell: Migration Is ‘Neutral’ for InflationSource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Read more »
Fed Chair Jerome Powell focused on soft landing, says inflation fight isn't overPowell and other Fed officials have said they will not cut interest rates until they have gained even greater confidence that inflation is headed back to the central bank’s 2% target after a …
Read more »
Watch Fed Chair Jerome Powell testify live before House financial services panelThe central bank chief is set for his second day of testimony on Capitol Hill.
Read more »
Key takeaways from Fed Chair Jerome Powell’s testimony on Capitol HillInflation isn’t the only thing the Fed is watching as it mulls when to begin cutting interest rates.
Read more »