The many challenges facing Jay Powell as he tries to pull off a soft landing

Published On Sep 20, 2024, 4:00 AM

Federal Reserve Chairman Jay Powell is facing challenges as he leads the central bank through a cycle of interest rate cuts amid a cooling job market and economic uncertainties. After a significant 50 basis point cut, Powell aims to maintain a narrative that the Fed is not falling behind the curve on monetary policy, despite doubts from Wall Street about the pace and need for further cuts. The Fed predicts a modest increase in unemployment and a slight decline in inflation, emphasizing the importance of balancing economic growth with inflation control. Internal divisions within the Fed complicate the outlook, with varying expectations on future rate cuts among policymakers. Powell must navigate these complexities while aiming for a soft landing for the economy.