Fed Chair Powell's interest rate message: The time has come
Speaking at the Jackson Hole Economic Policy Symposium, which began yesterday, US Federal Reserve Chair Jerome Powell stated that the time has come to adjust monetary policy.
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Leading central bankers from around the world, including Central Bank of the Republic of Turkey (TCMB) Governor Fatih Karahan, gathered at the Jackson Hole Economic Policy Symposium, which began yesterday. US Federal Reserve (Fed) Chair Jerome Powell is delivering a speech on the second day of the symposium.
In his remarks here, Powell stated that "the time has come to adjust monetary policy." Highlights from Powell's statements are as follows:
* Inflation expectations are less anchored; we have achieved this. Inflation is now closer to our goal. We will do everything we can to support a strong labor market as we make further progress toward price stability.
* Upside risks to inflation have diminished, while downside risks to employment have increased.
'TOWARD 2 PERCENT INFLATION'
* Inflation has fallen significantly, and we are now much closer to our target. I am confident that inflation is on a sustainable path toward 2 percent.
* The time has come to adjust policy. The timing and pace of interest rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.
* Our monetary policy has played an important role in disinflation. The measures we have taken to prevent inflationary pressure have continued. We anticipated that inflation would rebalance, and our expectations were shaped around this goal.
* We will do everything we can to support a strong labor market as we make further progress toward price stability.