By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: Breaking: Powell informs Congress that a rate cut is not appropriate until the Fed has more confidence in inflation
Share
Notification Show More
Recent Saved
Workers in Bucharest face challenges as temperatures rise
World
Dress code guidelines for the Qatari government sector during office hours
Qatar
Court rules in favor of worker after company dismisses him for salary deductions over 6 years, awarding BD 27,000.
Bahrain
UAE to See Almost 30,000 New Millionaires in 5 Years
UAE
Proposed New Labor Law in Bahrain Targets Increasing Job Opportunities
Bahrain
Latest News
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech
Beat the Heat This Summer with a Chill Out on Dubai Marina
World
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World
Jordan to Host Iraq in the Final Round of the Asian World Cup Qualifiers After Securing Historic Spot
Sports
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Forex > Breaking: Powell informs Congress that a rate cut is not appropriate until the Fed has more confidence in inflation
Forex

Breaking: Powell informs Congress that a rate cut is not appropriate until the Fed has more confidence in inflation

News Room
Last updated: 2024/07/09 at 2:14 PM
News Room
Share
4 Min Read
SHARE

Jerome Powell, the Chairman of the US Federal Reserve, recently delivered the Semi-Annual Monetary Policy Report and testified before the Senate Banking Committee, highlighting key points about the current economic situation. Powell emphasized the importance of good data to strengthen confidence in inflation, noting that while inflation remains above the 2% goal, elevated inflation is not the only risk faced. He also mentioned that cutting policy rates would not be appropriate until the Fed gains greater confidence that inflation is headed sustainably towards 2%.

Powell acknowledged that while the US economy is expanding at a solid pace, labor market conditions have cooled but remain strong and not overheated. The Fed has made considerable progress toward the 2% inflation goal, with recent monthly readings showing modest further progress. Powell highlighted the risks of reducing restraint too soon or too much, which could reverse progress on inflation, or reducing it too late or too little, which could unduly weaken the economy and job market.

In his Congressional testimony, Powell stated that the Fed will carefully assess incoming data and the balance of risks to determine the appropriate policy path in rate adjustments. He emphasized the Fed’s commitment to the 2% inflation goal and the importance of keeping longer-term inflation expectations well-anchored. Powell also stressed the need for the Fed’s operational independence to take a longer-term perspective in pursuit of its goals, despite any political pressures that may arise due to the upcoming November Presidential election.

The market is eagerly awaiting Powell’s testimony and any clues regarding the Federal Reserve’s interest rate path, with expectations that the Fed may consider a rate cut in September. The Nonfarm Payrolls report showed positive job growth in June but noted a decline in wage inflation on a yearly basis. Depending on Powell’s tone regarding inflation outlook, labor market conditions, and cautious approach to rate adjustments, the market may see big swings in asset classes such as the US Dollar and stock markets.

Jerome Powell’s role as the Chairman of the Federal Reserve holds significant influence on monetary policy decisions that shape the US economy. Through the Federal Reserve’s mandate to achieve price stability and foster full employment, Powell navigates the tools at his disposal, such as adjusting interest rates, to meet these goals. The Federal Reserve’s policy meetings, involving the Federal Open Market Committee (FOMC), assess economic conditions and make decisions on monetary policy to address inflation and employment concerns.

In times of crises or extremely low inflation, the Federal Reserve may resort to monetary policy measures like Quantitative Easing (QE), as seen during the Great Financial Crisis in 2008. QE involves the Fed increasing credit flow in the financial system by buying high-grade bonds. On the other hand, Quantitative Tightening (QT) is the reverse process of QE, where the Fed stops buying bonds and does not reinvest the principal from maturing bonds. These policies can have implications for the value of the US Dollar and impact financial markets. Jerome Powell’s testimony provides crucial insights into the Federal Reserve’s strategies and decisions that influence the US economy and global financial markets.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room July 9, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article Prime Minister meets with US Assistant Secretary of State for Near Eastern Affairs
Next Article Prediction of Dogecoin’s Price: DOGE Surpasses ADA
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports July 6, 2025
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech July 1, 2025
Beat the Heat This Summer with a Chill Out on Dubai Marina
World July 1, 2025
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World June 28, 2025

You Might also Like

Forex

Pound Sterling Price Update and Prediction: GBP strengthens as risk sentiment improves

January 6, 2025
Forex

Elliott Wave Technical Analysis of NVIDIA Corp. (NVDA) [Video]

January 6, 2025
Forex

EUR/USD: Is it a Dead Cat Bounce? – OCBC

January 6, 2025
Forex

AUD/JPY maintains gains around 98.50 following PMI data release

January 6, 2025
Forex

NZD/USD edges up to nearly 0.5650 after China’s Caixin Services PMI

January 6, 2025
Forex

Japanese Yen bulls stay on the sidelines as USD/JPY remains steady above the mid-157.00s

January 6, 2025
Forex

Silver Price Prediction: XAG/USD bears in control below $30.00 near 200-day SMA

January 6, 2025
Forex

Gold price drops from multi-week high due to hawkish Fed expectations

January 6, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?