Powell Confirms Federal Reserve’s Intent to Cut Interest Rates in 2024, Dismissing Skepticism on Wall Street

This Year, Powell Insists They Will Come

During a Q&A session with the House Financial Services Committee, Federal Reserve Chairman Jerome Powell reiterated that the central bank will indeed be cutting interest rates this year. Despite the Fed’s desire for inflation to cool further, hitting the 2% target is not necessary before rate cuts are implemented. Powell dismissed skeptics who have been questioning the possibility of rate cuts this year. The central bank will continue to monitor data and inflation trends before making any decisions on lowering interest rates.

Powell clarified that the Fed does not need inflation to drop to 2% before considering rate cuts. Rather, they are looking for more evidence that inflation is on a sustainable path towards the target. The focus is on upcoming CPI data set for release on March 12, which will provide more insights into inflation trends. Contrary to some bearish predictions circulating on Wall Street, Powell’s remarks suggest that rate cuts are still on the table for 2024.

In contrast to forecasts that there may be no rate cuts in 2024, Powell’s comments indicate that the central bank is still considering lowering interest rates. The Fed remains cautious and is closely monitoring economic data to make informed decisions regarding future rate adjustments. By emphasizing the importance of sustainable inflation trends, Powell aims to provide clarity on the Fed’s approach to managing monetary policy in the coming months.

During his testimony, Powell mentioned that the Fed is carefully assessing incoming data, the economic outlook, and risks involved before making any moves. The goal is to gain confidence that inflation is moving towards 2% sustainably before reducing the target range.

The S&P 500 reacted positively to Powell’s comments, reaching intraday highs and closing up around 0.5% for the day. This suggests that investors are optimistic about future rate adjustments and see them as a positive development for economic growth.

Overall, Powell’s comments provide clarity on the Fed’s approach to managing monetary policy in the coming months and suggest that rate cuts are still on

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