Financial News: Powell Says Fed Doesn't Need To Be In

Powell Says Fed Doesn't Need To Be In A Hurry To Lower Rates

11/14/2024 - 15:22:00 (RTTNews)

(RTTNews) - Following the Federal Reserve's decision to lower interest rates by a quarter point last week, Fed Chair Jerome Powell said in remarks on Thursday that the central bank does not "need to be in a hurry to lower rates" due to the strength of the economy.

"The economy is not sending any signals that we need to be in a hurry to lower rates," Powell said during an event in Dallas, Texas. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully."

Powell's comments on the outlook for rates came as he described the U.S. economy's performance as "remarkably good," noting the labor market remains in solid condition but is no longer a source of significant inflationary pressures.

The Fed chief noted the labor market cooling and the substantial improvement in broader supply conditions have brought inflation down toward the central bank's target of 2 percent over the longer run.

Powell noted the progress toward the inflation target allowed the Fed to lower rates by 25 basis points last week after cutting rates by 50 basis points in September.

"We are confident that with an appropriate recalibration of our policy stance, strength in the economy and the labor market can be maintained, with inflation moving sustainably down to 2 percent," he said.

Powell said the Fed is attentive to risks to both its employment and inflation goals, noting cutting rates too quickly could hinder progress on inflation but cutting rates too slowly could unduly weaken economic activity and employment.

"We are moving policy over time to a more neutral setting. But the path for getting there is not preset," Powell said. "Ultimately, the path of the policy rate will depend on how the incoming data and the economic outlook evolve."

The Fed's next monetary policy meeting is scheduled for December 17-18, with CME Group's FedWatch Tool currently indicating a 67.3 percent chance the central bank lowers rates by another quarter point.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Japan GDP Adds 0.2% On Quarter In Q3 (25 min(s), 06 sec(s) ago)
(RTTNews) - Japan's gross domestic product expanded by a seasonally adjusted 0.2 percent on qu ...Full Story»

Japan GDP Data Due On Friday (02 hr(s), 06 min(s), 06 sec(s) ago)
(RTTNews) - Japan will on Friday release preliminary Q3 numbers for gross domestic product, highli ...Full Story»

New Zealand Manufacturing PMI Sinks To 45.8 In October - BusinessNZ (02 hr(s), 27 min(s), 06 sec(s) ago)
(RTTNews) - The manufacturing sector in New Zealand continued to contract in October, and at a fas ...Full Story»

Powell Says Fed Doesn't Need To Be In A Hurry To Lower Rates (04 hr(s), 17 min(s), 06 sec(s) ago)
(RTTNews) - Following the Federal Reserve's decision to lower interest rates by a quarter poin ...Full Story»

Treasury Announces Details Of Twenty-Year Bond Auction (08 hr(s), 26 min(s), 06 sec(s) ago)
(RTTNews) - The Treasury Department on Thursday announced the details of this month's auction ...Full Story»

U.S. Crude Oil Inventories Climb More Than Expected (08 hr(s), 32 min(s), 06 sec(s) ago)
(RTTNews) - A report released by the Energy Information Administration on Thursday showed crude oi ...Full Story»

U.S. Jobless Claims Unexpectedly Dip To Nearly Six-Month Low (09 hr(s), 59 min(s), 06 sec(s) ago)
(RTTNews) - First-time claims for U.S. unemployment benefits unexpectedly edged lower in the week ...Full Story»

U.S. Producer Prices Rise 0.2% In October, In Line With Estimates (10 hr(s), 04 min(s), 06 sec(s) ago)
(RTTNews) - After yesterday's consumer price inflation data matched expectations, the Labor De ...Full Story»