From CNBC: 2024-11-14 15:38:54

Federal Reserve Chairman Jerome Powell stated that the strong U.S. economic growth allows for a cautious approach to lowering interest rates. He highlighted the robust domestic growth and stable labor market despite disappointing job growth in October due to storm damage and strikes. Powell also mentioned progress in inflation towards the 2% target but emphasized the need for further adjustment. His remarks led to a decrease in stocks and increase in Treasury yields.

Powell’s remarks came after the Federal Open Market Committee’s decision to lower the borrowing rate to 4.5%-4.75%. He described the rate cuts as a rebalancing of monetary policy to focus on sustaining the labor market alongside controlling inflation. While markets anticipate further rate cuts in December and 2025, Powell remained uncertain about the exact path and endpoint of the policy adjustment. The Fed continues to gradually reduce its balance sheet without a specified end date.

Read more: Powell says the Fed doesn’t need to be ‘in a hurry’ to reduce interest rates