Powell: Will likely be appropriate to begin cutting rates some time this year

Powell’s appearance is at 10 am but the opening statement is usually released early.

  • Do not expect to cut until we have greater confidence inflation moving toward 2%
  • Policy rate likely at its peak for the cycle
  • We will carefully assess incoming data, evolving outlook, balance of risks
  • Labor market remains relatively tight
  • Labor demand still exceeds supply; nominal wage growth has been easing
  • Risks to achieving dual mandate coming into better balance
  • While inflation is above 2%, it has eased substantially

There isn’t anything new here from what the Fed has been saying for weeks.

This article was written by Adam Button at www.forexlive.com. Source