Fed Chair Jerome Powell says central bank in no rush to reach 'neutral rate'

Published On Nov 15, 2024, 6:00 AM

Federal Reserve Chair Jerome Powell announced that the central bank is not in a rush to reach a neutral interest rate and plans to adjust rates based on incoming economic data. Powell emphasized a cautious approach, stating that current economic strength allows for careful decision-making without haste to lower rates. The Fed recently reduced the federal funds rate from the highest level in over two decades, indicating they are moving towards a more neutral policy while still monitoring inflation and labor market conditions.

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Given Powell's statements on cautious rate adjustments, the market may respond positively as it removes uncertainty around immediate rate cuts. This could bolster equities and sectors sensitive to interest rates.

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