Jerome Powell, president of the United States Federal Reserve, Fed, declared this Monday, July 15, that the organization will cut interest rates before inflation in the country reaches 2 %.

Powell stressed that the agency seeks “confidence that inflation moves sustainably towards that level to make its policy more flexible.”

The president of the Fed made this point clear during an interview with David Rubenstein at the Economic Club of Washington, where he added that the inflation data for the second quarter of 2024 has “added confidence about price control”, after a certain progress between January and March.

However, the official did not provide information on a specific date for the start of monetary flexibility. In this regard, he emphasized that meetings will continue to analyze inflation data and the risk balance forecast.

What Powell did assure is that “after the fall in inflation in recent months, the organization will focus more on its dual mandate, which includes, in addition to price stability,” the search for “maximum sustainable employment in the country.”

M.Pino

Source: bolsamania

(Reference image source: engin akyurt in Unsplash)

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