Fed Chair Powell suggests further rate cuts, aiming to reach neutral, but no immediate changes expected.

From Investing.com: 2025-02-12 01:10:00

After 100bp of rate cuts, Fed Chair Powell suggests policy remains restrictive, aiming to cut rates closer to neutral, but no change expected before June. Economic activity solid, labor market strong, inflation somewhat elevated, but no immediate need to adjust policy stance. Bias to cut again if necessary, with focus on inflation and economic growth. Fed wary of reducing policy restraint too fast or too slowly. No mention of hiking rates amid President Trump’s policies. Forecasting two rate cuts in the second half of the year to edge closer to a “neutral” monetary policy stance. Fed reacts to economic data, not trade policy.



Read more at Investing.com: Fed Remains Inclined to Cut Rates, But Is in No Hurry