Speaking in Jackson Hole, Wyoming, Federal Reserve Chairman Jerome Powell is giving his strongest signal yet that interest rates will be cut at the next Fed Meeting, which is set for mid-September.
“The time has come for policy to adjust,” Powell said. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
He added that, “While the task is not complete, we have made a good deal of progress toward that outcome… My confidence has grown that inflation is on a sustainable path back to 2 percent,” which is the Fed’s inflation goal.
Interest rates are currently at a 23-year high, between 5.25 and 5.55%.
Inflation is not yet at the Fed's goal of 2%, but Powell maintained that, “the upside risks to inflation have diminished,” Powell said. “And the downside risks to employment have increased.