Fed’s Powell Ready to Support Job Market, Even If It Means Lingering Inflation Inflation has eased “notably in the past year but remains above our longer-run goal of 2%,” Federal Reserve Chair Jerome Powell said to reporters in Washington. The FOMC left the benchmark federal funds rate in a range of 5.25% to 5.5%.Source: Bloomberg Fed chief says ‘unexpected’ weakening could prompt rate cuts Fed shift is good news for Biden and financial markets As inflation surged in 2022, the Federal Reserve moved to prevent a wage-hike spiral by jacking up interest rates. Now, with unemployment edging up, the central bank is signaling a willingness to cut rates to head off a job-cutting spiral – even if that means somewhat higher inflation for a while. For the first time in the current economic upswing, Fed Chair Jerome Powell used his opening statement at Wednesday’s press conference to declare that a surprise increase in unemployment could prompt the Fed to lower rates. He then repeated that message several times in response to reporters’ questions. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Florida Real Estate Falls As Homebuyers Deterred by Higher Insurance Costs READ MORE Risk of a global recession is minimal, IMF economist says — would take ‘a lot to derail’ READ MORE IEA, OPEC Divergence On Oil Demand Becomes Too Big To Ignore READ MORE New Study Exposes 'Greedflation' Impact READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment
