Federal Reserve Chairman Jerome Powell indicated on Friday that the central bank is ready to start cutting its key interest rate, possibly as early as next month, in an effort to prevent further erosion in the labor market while continuing to monitor inflation closely.
“The time has come for a policy shift,” Powell stated in a closely watched speech at the Federal Reserve’s annual symposium in Jackson Hole, Wyoming. He stressed that the pace and timing of any rate cuts will hinge on incoming data, the changing economic landscape, and the balance of risks.
Powell said that inflation has resumed its downward trajectory following a brief resurgence earlier this year.
“My confidence has grown that inflation is on a sustainable path back to 2 percent,” he said.
Although Powell’s comments shed light on the Fed’s immediate plans, uncertainties persist regarding the…
