August 23, 20224
The time has come for policy to adjust the timing and pace of rate cuts will depend on incoming data and the balance of risks
Interest rates will be cut in September. That statement you just heard is as close as you’re ever going to get to a confirmation of a rate cut from the Federal Reserve chairman.
Jerome Powell was speaking at an economic symposium in Wyoming last night when he made the comments. But you’re probably wondering why now? Well – it’s two-fold. The first part is – as I’ve been reporting, whether you believe it or not – because we’ve seen a significant decrease in inflation numbers.
The other reason why the Fed chair says rate cuts are coming is because the labor market has cooled off from that overheated state we were in last year and according to the Federal Reserve – right now – it’s in a pretty good place.
So the question now is – how much will the fed cut rates. Will it be a quarter of a percent or more? We’ll see when the federal reserve meets September 17 and 18.
