Fed's Powell: 'Time Has Come' to Cut Interest Rates
Summary from the AllSides News Team
On Friday, Federal Reserve Chair Jerome Powell endorsed the central bank cutting interest rates from a 23-year high, saying he does not want to see the job market cool further.
The Details: Powell did not say how big the rate cut would be, but the Fed is expected to announce a quarter-point cut when it meets in mid-September.
Key Quote: "The upside risks to inflation have diminished. And the downside risks to employment have increased. The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks," Powell said at the Jackson Hole Economic Policy Symposium.
For Context: Unemployment has risen to 4.3%, and inflation has fallen to 2.9%, the lowest it has been since 2021.
Stock Market Reaction: After Powell spoke, "the Dow Jones Industrial Average rose 460 points, or 1.1%, to 41,173. The S&P 500 gained 1%, and the Nasdaq climbed 1.3%," according to the New York Post (Lean Right bias).
How the Media Covered It: Across the spectrum, outlets highlighted Powell's statements and the following stock uptick. Some outlets on the left emphasized Powell's success in combatting inflation.
Featured Coverage of this Story
From the Left
Fed's Powell at Jackson Hole: "The time has come" for rate cuts
Federal Reserve chair Jerome Powell said Friday that the central bank is poised to cut interest rates, adding that policymakers do not want to see the job market cool any further.
Why it matters: In a much-anticipated speech in Jackson Hole, Wyoming, Powell said the Fed's fight to reduce inflation has largely succeeded and it now is attuned to risks of a faltering job market — setting up a rate cut in mid-September.
What they're saying: "The time has come for policy to adjust," Powell said at the Kansas City Fed's annual economic symposium in the Grand...
From the Center
Fed's Powell says 'time has come' to lower interest rates
Federal Reserve Chair Jerome Powell on Friday offered an explicit endorsement of interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation was within reach of the U.S. central bank's 2% target.
"The upside risks to inflation have diminished. And the downside risks to employment have increased," Powell said in a highly anticipated speech to the Kansas City Fed's annual economic conference in Jackson Hole, Wyoming. "The time has come for policy to adjust. The direction of travel is clear, and the timing and...
From the Right
Fed's Powell: 'Time Has Come' to Pivot on Interest Rates
With inflation nearly defeated and the job market cooling, the Federal Reserve is prepared to start cutting its key interest rate from its current 23-year high, Chair Jerome Powell said Friday. Powell did not say when rate cuts would begin or how large they might be, but the Fed is widely expected to announce a modest quarter-point cut in its benchmark rate when it meets in mid-September. “The time has come for policy to adjust," Powell said in his keynote speech at the Fed's annual economic conference in Jackson Hole,...
AllSides Picks
September 12th, 2024
September 13th, 2024
Discuss & Debate economy and jobs
Peacebuilding in the United States Conversation
September 17 at 11am PT / 2pm ET Living Room ConversationsMore News about Economy and Jobs from the Left, Center and Right
From the Left
From the Center
From the Right
