Federal Reserve's Powell: If inflation cools down, the Federal Reserve may further cut interest rates

Deep Tide TechFlow News, on January 4th, according to Jinshi Data, Philadelphia Federal Reserve Chair Powell stated that if inflation cools down, the Federal Reserve may further cut interest rates, but also hinted that any additional rate cuts might not be implemented immediately. Powell, in a speech delivered on Saturday in Philadelphia, expressed cautious optimism that inflationary pressures could ease in the coming months. This year marks her first term as a voting member of the Federal Reserve’s policy committee. She indicated that the current interest rate target range of 3.5% to 3.75% remains “slightly restrictive,” meaning that this level of interest rate is sufficient to curb inflation, potentially creating conditions for further rate cuts in the future. According to the published speech transcript, Powell said, “If inflation eases and the economy remains on its current track, a moderate adjustment to the federal funds rate later this year may be appropriate.” Powell noted that signals regarding the health of the labor market are “mixed,” suggesting that while the market is under pressure, it has not collapsed; she is awaiting more data to clarify the situation. This statement hints that she may want to see more evidence of economic developments in the coming months before supporting further policy adjustments.