Powell signals US Fed may cut rates soon

US Federal Reserve President Jerome Powell opened the door so lightly to reduce a significant interest rate in the coming months, but did not give a clue to the timing of a movement.

This suggested that the Central Bank would progress carefully because it continued to evaluate the impact of tariffs and other policies on the economy.

In a high -profile speech at the White House and Wall Street, Powell said that there are risks of both unemployment and stubborn inflation.

This puts the Fed into a difficult point, because he usually stopped the short -term ratio to keep high to combat inflation or to increase the upgrade time.

In the statements prepared, Powell, “Unemployment rate and the stability of other labor market measures, the changes in our policy stance, we take care of us carefully,” he said.

This shows that the FED will continue to evaluate the work and inflation data, as it decides that it will not reduce rates, including the next meeting on September 16-17.

“However, with the policy in the restrictive zone, the basic appearance and the changing risk balance can guarantee to adjust our policy posture,” he added, he added that Powell was thinking of a more deduction than he made in previous comments.

Nevertheless, Powell’s words show that the Fed will still progress carefully in the coming months and that it will make ratio decisions depending on how inflation and unemployment develop in the coming months.

This may disappoint President Donald Trump, who condemned the Uman financial markets and Powell, who had already reduced the proportions of the Fed’s next moves.

At the Fed’s Annual Economic Symposium at the FED’s Wyoming, Jackson Hole, about 100 academics, economists, and a conference with Central Bank officials from all over the world.

According to Futures pricing, Powell spoke to a large extent expected to decrease in September, but these rates fell this week.

Trump, arguing that there is no inflation, and said that a deduction would reduce interest payments on the government’s $ 37 ($ A58) trillion debt.

After Trump and his allies claimed that a Trump official may have made a mortgage fraud, they called for a Fed Governor Lisa Cook to resign and increased the attacks on the FED, including this week.

In his statements, the FED President stressed that tariffs have removed inflation and may rise further in the coming months.

He also suggested that the labor market has not explicitly weakened to push the FED to push the FED to reduce borrowing costs, which can increase growth and recruitment.

“The effects of tariffs on consumer prices can now be clearly seen. We expect these effects to accumulate in the coming months, high uncertainty about timing and quantities,” he said.

Inflation has risen even more in recent months, but three years ago, a 9.1 percent summit fell.

Tariffs did not encourage inflation as much as some economists worried, but starting to remove the prices of intensely imported goods such as furniture, toys and shoes.

Consumer prices increased by 2.7 percent in July a year ago, over 2.0 percent of the Fed’s target.

Except for variable food and energy categories, basic prices increased by 3.1 percent.

Regarding the labor market, Powell said that even if recruitment slows down this year sharply, the unemployment rate is low.

The authority added that when the migration fell sharply, less work is necessary to keep unemployment under control.

Nevertheless, while recruiting, a sharper risk of decline with increasing layoffs increased, Pow Powell said.

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