Fed megaphone: Powell brings rate cut back into view, highlighting cautious optimism

Odaily Planet Daily News According to Nick Timiraos, a Wall Street Journal reporter known as the “Fed megaphone”, Fed Chairman Powell has put interest rate cuts back on the table. Powell’s speech highlighted a cautious optimism that had faded after disappointing inflation data in April. He said that the economy has made “significant progress”, “real progress” and “considerable progress” in lowering inflation while achieving stable growth. However, he remains cautious about rate cuts, indicating that the likelihood of a rate cut at the Fed’s meeting later this month is still low. In addition, Powell refused to disclose whether he is preparing for a rate cut in September. He said, “I won’t be nailing down a specific date today.” (WSJ)