The US Federal Reserve Chairman Jerome Powell has reiterated the next plan for the bank following its latest 25 basis points interest rate cut. In a widely televised speech, the Fed Chair said the United States economy is not on a preset course, implying more monitoring is necessary. Despite the continuously dovish stance from the Fed, cautious statement has fueled the take on what next for the market.
Jerome Powell Speech: “Further Recalibration” Likely
Over the past few weeks since the Federal Reserve cut interest rates, there remained speculations that more cut are imminent. The 0.25% interest rate cut announced today confirmed the trend for many who had predicted the move from the Feds.
In his speech, Fed Chair Jerome Powell said the bank must maintain “an appropriate recalibration” of its policy stance. This he noted will help usherin in strength in the economy and the labor market. Ultimately, the goal for the apex bank is to drag inflation down to the 2% benchmark.
The Fed Chair also confirmed that the risks it is taking with these rate adjustments to achieve employment boom is currently balanced out. With this readiness for further recalibration, Jerome Powell is not ruling out further interest rate cuts. Previously, industry analysts have projected that the Fed might cut interest rate in November and December.
As it stands, the major catch here hinges on the economic performance as will be measured by US CPI inflation data among others.
This is a developing story, please check back for updates!!!
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