Jerome Powell neither confirmed nor denied this projections as he placed conditions on further rate cuts ahead. In the run-up to the latest interest rate cut, Fed officials have hinted at constant watch of key economic indices. In the Fed Chair’s speech, he highlighted how much crucial inflation data have cooled over the past year.

He recalled the slowdown in inflation data as measured by PCE, CPI and other indices. He said while the current figures rose 2.5% in the past year in August, these are closer to the target of 2%. According to him, these slowdown in inflation have continued to strengthen the economy overall.

He said the Federal Reserve will continue to make its decision meeting by meeting. This aligns with earlier stance from Fed officials who noted that economic data will determine how the Feds will approach interest rate cuts.

Following its Peers

Jerome Powell said the Fed is well positioned to address any form of risk that might arise in the market and economy. #PCEInflationWatch2