At the central bank's annual gathering in the Grand Teton National Park, Powell expressed that 'the time has come for policy to adjust,' indicating a shift toward interest rate cuts.
Danielle Hale highlighted that Powell's statements suggest, 'my confidence has grown that inflation is on a sustainable path back to 2%,' indicating a favorable view on future rate cuts.
Hale anticipates a '25 basis point cut in September' might be followed by further cuts in late 2024, contingent on labor market and inflation data.
Chair Powell emphasized that the pace and timing of future rate cuts will depend on 'incoming data, the evolving outlook, and the balance of risks' in the economy.
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