Jerome H. Powell – Jackson Hole speech:
Overall, the economy continues to grow at a solid
pace. But the inflation and labor market data show an evolving situation. The
upside risks to inflation have diminished. And the downside risks to employment
have increased. As we highlighted in our last FOMC statement, we are attentive
to the risks to both sides of our dual mandate.
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.
We will do everything we can
to support a strong labor market as we make further progress toward price
stability. With an appropriate dialing back of policy restraint, there is good
reason to think that the economy will get back to 2 percent inflation while
maintaining a strong labor market. The current level of our policy rate gives
us ample room to respond to any risks we may face, including the risk of
unwelcome further weakening in labor market conditions.
Powell Ignored the Elephant in the Fed’s Jackson
Hole Lodge
The Fed chair said it’s time to adjust policy rates.
But he didn’t say by how much, and that’s all that really matters now for
bonds.
The Make-or-Break Moment That Will Determine the
Economy’s Fate
Powell Faces Economic Crossroads as He Prepares to
Speak at Jackson Hole