Fed Chairman: Rate Cut Will Be on the Table at September Meeting

Federal Reserve Chairman Jerome Powell said that inflation and employment data continue to move toward a better balance, but the central bank will not cut interest rates until it has greater confidence that inflation is moving “sustainably” toward its 2% target.

Powell told reporters following the Federal Open Market Committee meeting that a rate cut is on the table in September, adding, “I can imagine a scenario of zero cuts to several cuts this year, depending on how the economy evolves.”

Powell made it clear that there is no forecast for the next meeting in September, noting that a cut too late could unnecessarily weaken the economy, but that it is “possible and on the table.”