During the press conference, Powell was asked whether he was ready to start cutting rates as markets already expected that Fed would cut rates in September. Powell noted that if data met expectations, a cut could be on the table as soon as the next meeting.
To meet Fed’s expectations, inflation should decline, economic growth should remain relatively strong, while the labor market should remain at roughly the same level.
Powell highlighted ongoing gradual normalization of labor market conditions and noted that Fed planned to maintain a balance between inflation and economic growth.
During the press conference, Powell often talked about Fed’s dual mandate of maintaining price stability and maximum employment. He said, that labor market at this point was not an inflationary source and that he did not want to see deterioration in labor market conditions.
Overall, Powell’s comments were dovish. Not surprisingly, U.S….
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