'The time has come' to lower interest rates: Fed Chair Jerome Powell
Speaking at one of the most closely-watched annual gatherings of global central bankers in
At the same time, the
"The upside risks to inflation have diminished. And the downside risks to employment have increased," Powell said. "The time has come for policy to adjust."
Investors cheered the chairman's remarks. The Dow Jones Industrial Average jumped more than 300 points while the broader S&P 500 index rose about 1 percent.
Powell cautioned that the timing and speed of interest rate cuts will depend on how the economy performs. Markets anticipate a quarter percentage point cut when policymakers meet in mid-September. A larger, half-point rate cut is possible if the August jobs report — due out eleven days before the Fed meeting — is weaker than expected.
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Powell: 'The time has come' for the Fed to soon begin reducing interest rates
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