Powell Puts Breaks On September Rate Cut

Federal Reserve Chair Jerome Powell held rates steady at 4.25% to 4.50% Wednesday and resisted pressure to cut in September, according to Benzinga. Two members supported a rate cut, making it the most divided Federal Reserve meeting in more than 30 years. Powell said inflation remains slightly above 2% and stressed the need to keep policy tight to avoid entrenching recent price increases. He pushed back against pressure to cut rates this fall, citing the need to review upcoming jobs and inflation data before making a decision. Powell said no decision has been made for September, stressing the Fed must wait for more data to avoid acting too early or too late on inflation and the labor market. Powell said recent tariffs are starting to raise consumer prices, with $30 billion in monthly revenue contributing to goods inflation seen in June’s CPI report. Markets fell after Powell’s cautious stance dimmed hopes for a September rate cut.