watch
now
Federal
Reserve
Chair
Jerome
Powell
said
Wednesday
that
the
U.S.
central
bank
could
cut
interest
rates
at
its
September
meeting
if
economic
data
continues
on
its
current
path.
“If
that
test
is
met,
a
reduction
in
our
policy
rate
could
be
on
the
table
as
soon
as
the
next
meeting
in
September,”
Powell
said.
Recent
economic
data
has
pointed
toward
inflation
data
falling
back
toward
the
central
bank’s
2%
target,
while
the
unemployment
rate
has
crept
up
above
4%.
The
Fed
said
in
its
policy
statement
Wednesday
that
it
is
attentive
to
risks
on
“both
sides
of
its
dual
mandate,”
which
is
maximum
employment
and
stable
prices.
Powell
said
Wednesday
that
central
bankers
would
be
“data
dependent,
but
not
data-point
dependent”
in
determining
when
to
cut
rates.
“The
question
will
be
whether
the
totality
of
the
data,
the
evolving
outlook
and
the
balance
of
risks
are
consistent
with
rising
confidence
on
inflation
and
maintaining
a
solid
labor
market,”
Powell
said.
The
personal
consumption
expenditures
price
index
—
the
Fed’s
preferred
inflation
gauge
—
showed
a
rise
of
2.5%
year
over
year
in
June.
The
next
nonfarm
payrolls
report
is
due
out
on
Friday
and
is
expected
by
some
economists
to
show
a
slowdown
in
hiring.
“I
don’t
think
of
the
labor
market
in
its
current
state
as
a
likely
source
of
significant
inflationary
pressures.
So
I
would
not
like
to
see
material
further
cooling
in
the
labor
market,”
Powell
said.
On
Wednesday,
the
Fed
held
its
benchmark
rate
steady
at
a
target
range
of
5.25%
to
5.50%.
When
the
Fed
decides
to
reduce
rates,
it
is
expected
to
do
so
by
25
basis
points,
or
0.25
percentage
points.
Powell
said
Wednesday
a
potential
50
basis-point
rate
cut
is
“not
something
we’re
thinking
about
right
now,”
and
indicated
that
any
additional
cuts
at
future
meetings
would
also
depend
on
the
economic
data.
The
next
meeting
of
the
central
bank’s
Federal
Open
Market
Committee,
which
determines
any
rate
move,
is
set
for
Sept.
17-18.
Powell
is
expected
to
speak
publicly
again
before
that
meeting
at
the
Jackson
Hole
Economic
Policy
Symposium
in
late
August.
