Fed in no rush to cut rates, says Powell

In
his
speech
in
Dallas,
Powell
said
it
wouldn’t
be
a
surprise
to
see
slow
progress
on
the
inflation
front
moving
into
2025,
with
further
upward
movement
possible.
“Core
measures
of
goods
and
services
inflation,
excluding
housing,
fell
rapidly
over
the
past
two
years
and
have
returned
to
rates
closer
to
those
consistent
with
our
goals,”
he
said.
“We
expect
that
these
rates
will
continue
to
fluctuate
in
their
recent
ranges.”

Speech
by
Chair
Powell
on
the
economic
outlook

@DallasFed:

https://t.co/IjHaJLJMcZ
Watch
live:

https://t.co/Dz8jDnlS5M

—
Federal
Reserve
(@federalreserve)

November
14,
2024

The
overall
consumer
price
index
(CPI)
has
dipped
since
hitting
its
highest
level
in
decades
(9.1%)
at
the
beginning
of
2022,
thanks
in
large
part
to
the
Fed’s

aggressive
series
of
rate
hikes
in
that
year
and
2023.
Still,
while
it
continues
to
trend
towards
the
central
bank’s
2%
target,
“it
is
not
there
yet,”
Powell
cautioned.
“We
are
committed
to
finishing
the
job.”

The
central
bank
is
next
scheduled
to
meet
on
December
17-18,
with
Powell
noting
inflation
and
jobs
data
would
be
keenly
watched
in
the
weeks
before
those
deliberations.
He
also
suggested
sluggish
jobs
figures
could
potentially
tip
the
balance
in
favor
of
a
cut
at
that
meeting.
“The
economy
is
doing
very
well,
and
that’s
a
great
thing.
We
totally
welcome
that,”
he
said.
“But
look
at
the
labor
market.”

At
present,
the
Fed
is
“right
where
we
need
to
be,”
Powell
said,
“and
we
can
be
careful
about
[cutting
rates].”

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