Washington – Federal Reserve Chairman Jerome Powell said on Friday that it is time to adjust the tight monetary policy in the United States, after the inflation rate stabilized.
This came in a speech he gave at the Jackson Hole meetings, which began on Thursday and will continue until Saturday, with the participation of central bank presidents from around the world and economic experts.
Powell said it was time to adjust monetary policy, adding: “The path is clear, and the timing and pace of rate cuts depend on the incoming data. Things are becoming clearer.”
He stressed that he has more confidence that inflation in the United States is “on a sustainable path back to 2 percent,” after it recorded its highest level in June 2022 in 41 years, recording 9.1 percent, while it reached 2.9 percent last July.
Since March 2022, the US Federal Reserve has raised interest rates from 0.25 percent to 5.5 percent currently, the highest level in 23 years.
Powell added: “The labor market seems unlikely to be a source of high inflationary pressures anytime soon. We neither seek nor welcome a cooling of the labor market.”
Global financial markets were struck with panic early this month by the release of US data showing a significant slowdown in the creation of new jobs in the US market during July, while unemployment rose to 4.3 percent, the highest level since October 2021.
The US Federal Open Market Committee will hold a meeting on September 17-18 to decide on interest rates, amid expectations of a 25 basis point cut.
Anatolia
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2024-08-24 17:35:08
