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Federal Reserve Chair Jerome Powell said Monday that the central bank will lower interest rates “over time,” while again emphasizing that the overall US economy remains on solid footing.
As Bloomberg reports, Powell reiterated his belief that inflation will continue moving toward the Fed’s 2% target, adding that economic conditions “set the table” for a further easing of price pressures.
“Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance,” Powell said in a speech in Nashville at the annual meeting of the National Association for Business Economics. “But we are not on any preset course,” he said, noting that policymakers will continue to make decisions meeting by meeting based on incoming economic data.
In a Q&A session following his speech, the Fed chair acknowledged that projections point toward quarter-point rate cuts at the next two meetings, in November and December, but he cautions that the Federal Open Market Committee will make its decisions based, in part, on information they haven’t yet received.
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