Time will come at some point that it’s appropriate to cut

Federal Reserve Chairman Jerome Powell holds a news conference to explain why they have decided to leave the policy rate, federal funds rate, unchanged at the range of 5.25-5.5% at September FOMC meeting and responds to questions.

Key takeaways

“In the median forecast, we don’t see a big increase in unemployment, but that is not guaranteed.”

“Would not call soft landing a baseline expectation.”

“It’s also possible, if the path to soft landing has widened, it may be decided by factors outside our control.”

“The fact we’ve come this far lets us proceed carefully.”

“For now, the question is to try to find the level where we can stay.”

“The decision we make at last two meetings this year will depend on the totality of data.”

“When I answer a question about cutting, I never intend to send a signal about timing.”

“The time will come at some point that it’s appropriate to cut.”

“Part of decision to cut may be that real rates are rising because inflation is coming down.”

“Consumer spending has been driving GDP.”

“GDP is not a mandate; the question will be is the heat we see in GDP really a threat to the ability to get to 2% inflation.”

About Jerome Powell (via Federalreserve.gov)

“Jerome H. Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. He was reappointed to the office and sworn in for a second four-year term on May 23, 2022. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System’s principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.”