Jerome Powell Signals Potential Fed Rate Cut in September Amid Solid Economic Growth

Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut in September if economic conditions support the decision. The Fed kept the federal funds rate unchanged at 5.25-5.5 per cent, citing ongoing solid economic growth and commitment to maximum employment and 2 per cent inflation target.

Federal Reserve Chair Jerome Powell has suggested a potential interest rate cut in September, provided that economic conditions align with expectations. This announcement came during the latest Federal Reserve meeting, which maintained the federal funds rate at 5.25 to 5.5 per cent for the eighth consecutive time.

Powell pointed out that recent data indicates ongoing solid economic growth in the U.S. The committee reaffirmed its goals of achieving maximum employment and a long-term inflation rate of 2 per cent. He emphasized that the committee is closely monitoring incoming data, evolving economic conditions, and the balance of risks.

The Federal Reserve noted that the U.S. economy is expanding at a solid pace, with a strong labor market and low unemployment. The committee is prepared to adjust monetary policy as needed if risks emerge that threaten the inflation target. Powell underscored that the current data suggests the economy is neither overheating nor weakening significantly.

(With inputs from agencies.)