Powell Says Fed Policy Still Restrictive, Leaves Door Open For More Cuts If Job Weakness Persists

Benzinga

Fed Chair Jerome Powell said rates remain “modestly restrictive” after last week’s cut, stressing the balance between jobs and inflation. He avoided clear guidance on October’s meeting but pushed back against political pressure.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02Federal Reserve Chair Jerome Powell said Tuesday that interest rates remain modestly restrictive

00:06even after last week's cut according to the Wall Street Journal.

00:09Speaking of Providence, Powell reiterated that the Fed faces a balancing act

00:13between supporting jobs and keeping inflation near its 2% target.

00:16He cautioned that cutting rates too aggressively risks letting inflation linger closer to 3%,

00:21while keeping policy too tight could unnecessarily damage hiring.

00:25Powell said the Fed shifted focus to the labor market after a summer slowdown in job growth

00:29left the economy unstable to create enough jobs for those seeking work.

00:33Powell avoided firm guidance on the Fed's October meeting,

00:36but did not dispute market expectations of another rate cut.

00:39Powell also pushed back against political criticism of Trump and Treasury Secretary Scott Besson,

00:44emphasizing that the Fed's decisions are not driven by partisan politics.

00:47For all things money, visit Benzinga.com.

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