Fed to cut rates before inflation falls to 2%

When will the expected Fed rate cut happen? US Federal Reserve Chairman, Jerome Powellnoted this Monday that The US central bank will not wait until inflation falls to 2% to cut interest rates.

“If you wait until inflation is completely down to 2%, you’ve probably waited too long because the tightening you’re doing, or the level of tightness you have, continues to have an impact that is likely to push inflation below 2%.“Powell said during a conversation with David RubinsteinPresident of the Economic Club of Washington.

Powell reiterated that the Fed will base its monetary policy decisions on data. “We’ve been very clear that we’re not going to wait until inflation gets to 2%,” he said again.

The US monetary authority’s president also acknowledged some progress in containing inflation in the second quarter of 2024.”Now we had three best readings“If you average them out, that’s a pretty good pace,” Powell said.

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