Fed Chair Powell Signals Potential Pause as Inflation Pressures Soften
Jerome Powell stated that keeping interest rates unchanged could continue if August data confirms declining inflationary pressure.
Wall Street indices opened higher on Thursday following comments from Federal Reserve Chair Jerome Powell during a Reuters Next NewsMaker event. The central bank official indicated the current monetary policy stance might not change this month provided economic data suggests ongoing easing of price pressures. This rhetoric reduced trader bets on an immediate rate hike, marking a shift after recent market pessimism related to US-Iran military tensions had temporarily overshadowed sentiment. Powell noted that his decision regarding interest rates would depend heavily on inflation figures released in August. He added, "If we make continued progress toward our two percent goal, I am prepared to support keeping the federal funds rate at its current level." However, he warned that raising borrowing costs might become necessary should recent data show persistent pressure on prices remains unmitigated.
