Powell Hints at September Rate Reduction if Inflation Eases

– Federal Reserve Chair Jerome Powell indicated that the central bank is likely to cut interest rates in September, provided inflation continues to show improvement.

– This decision is influenced by growing concerns about potential weakening in the labor market. While Powell expressed confidence in the Fed’s readiness to reduce borrowing costs from their current two-decade high, he emphasized that any rate cut would depend on favorable economic data in the coming months.

– The Federal Open Market Committee has kept the federal funds rate at 5.25% to 5.5% since July last year, balancing inflation control with labor market stability.