#PowellRemarks

Key Highlights from Powell’s Remarks

• Imminent Rate Cuts: Powell expressed confidence that inflation is approaching the Fed’s 2% target, citing a decline from a peak of 9.1% in June 2022 to 2.9%. He emphasized that further cooling in the labor market would be unwelcome, suggesting that interest rate cuts are likely in the near future.  

• Labor Market Concerns: The unemployment rate has risen to 4.3%, and Powell highlighted that the Fed does not seek or welcome further weakening in labor market conditions. 

• Data-Dependent Approach: While Powell did not specify the exact timing or magnitude of the rate cuts, he indicated that decisions would be based on incoming economic data, balancing the risks to both inflation and employment.