Powell Signals Uncertainty Over December Rate Cut
(MENAFN) US Federal Reserve Chair Jerome Powell on Wednesday cast doubt on the likelihood of an additional policy rate reduction at the central bank's December meeting, defying market anticipations, emphasizing that it "is not a foregone conclusion, far from it."
“During the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December. A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it," Powell remarked during a press briefing following the central bank's policy announcement.
Amid the ongoing federal government shutdown, which has temporarily halted government data releases, Powell noted that the central bank will continue to gather some economic indicators from alternative sources. Nevertheless, he cautioned that the elevated uncertainty could affect the decision-making process for December.
“We get some data on inflation, some data on economic activity. We’ll have a picture of what’s going on. We also will have the Beige Book,” Powell explained.
He added, “I would say we’re not going to be able to have the detailed feel of things. But I think if there were a significant or material change in the economy one way or another, I think we’d pick that up through this."
On Wednesday, the Fed lowered the federal funds rate by 25 basis points to a target range of 3.75% to 4%, in line with forecasts, while signaling potential risks to employment.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
