Inflation in the United States will continue to fall, according to the predictions of Federal Reserve (Fed) Chairman Jerome Powell. The official also believes that further interest rate cuts will occur this year.

Powell stated before participating in an event of the Association for Business Economics Foundation (NABE) in Nashville (Tennessee) that “economic conditions open the way for further moderation of inflation,” adding that the labor market has remained stable.

Regarding interest rates, it is important to remember that the Fed applied a cut during its recent meeting on September 18, for the first time since 2020. This reduction was “half a percentage point, to prevent the labor market from deteriorating too quickly.

The president of the Fed foresees that if the economy evolves globally as they have calculated, “the (monetary) policy will go with the passage of time towards a more neutral orientation; that is, lower rates”.

M.Pino

Source: bancaynegocios

(Reference image source: Planet Volumes for Unsplash+)

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