US Fed Chief Powell hints at September rate cut amid strong economic activity and lowering inflation

New Delhi [India], August 1 (ANI): U.S. Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut in September if economic conditions align with expectations. The Fed made these remarks during the latest Federal Reserve meeting which decided to keep the federal funds rate unchanged at 5.25 per cent to 5.5 per cent for the eighth time.
"I think it is a difficult judgement to make it and what you see is the judgement of the committee is that that time is drawing near, that time could be in September if you know that the date supports it," said Jerome Powell.
He also noted that the recent data indicates economic activity in the U.S. has continued to expand at a solid pace. The committee reaffirmed its commitment to achieving maximum employment and a long-term inflation rate of 2 per cent.
He added that the committee is carefully assessing incoming data, evolving economic conditions, and the balance of risks.
"The job is never done we are watching to see, which way the economy heads and I think if we are to respond to weakness, we are certainly well equipped to do that but that's not what we are saying we are saying that there a strong economic activity good labour market and inflation coming down," said Powell.
Fed remarked that the U.S. economy is growing at a solid pace, and the Fed committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the inflation target.
It added that the committee will take into account a wide range of information, including readings on labour market conditions, inflation pressures and inflation expectations, and financial and international developments.
"We don't see any reason to think this that this economy is overheating or shortly weakening that's not in the day right now, what's in the day right now is the economy that is growing at a solid pace, a labour market that has cooled off but none the less unemployment is low in a day over long show strong labour market" added Powell. (ANI)