Voz media US Voz.us
76 days and counting

SINCE KAMALA HARRIS' LAST PRESS CONFERENCE

Jerome Powell anticipates lower interest rates in the face of accelerating unemployment: "The time has come for policy adjustments"

Markets responded affirmatively to Powell's announcement, with the Dow Jones rising more than 300 points, while the S&P 500 was up about 1%.

The U.S. created fewer jobs than expected during July/ Chris KleponisAFP

Published by

Jerome Powell indicated a drop in interest rates is on the way. After the past few months yielded a slowdown in hiring, job creation and inflation, the Federal Reserve chairman spoke about the topic in a speech in Jackson Hole, Wyoming

"The time has come to make policy adjustments. The direction of travel is clear, and the timing and pace of rate cuts will depend on the incoming data, the evolving outlook, and the balance of risks," Powell said.

His remarks come just two months after he refused to move the 5.5% rate even as the unemployment rate increased to 4.3%.

Markets responded positively to Powell's announcement, with the Dow Jones rising more than 300 points, while the S&P 500 was up about 1%.

The Fed raised interest rates between 2022 and 2023, a hike that constituted the highest level in two decades. Some of the consequences of such a high interest rate are difficulty in obtaining a car, financing a business or carrying a balance on a credit card.

"Most rate traders expect a quarter-percentage-point rate cut when the Fed meets again in mid-September, according to the CME Fed Watch forecasting algorithm, although about a third think it could be as much as half a percentage point," they reported from The Hill.

tracking