Federal Reserve Chair Jerome Powell signaled Friday that interest rate cuts are coming soon.
“The time has come for policy to adjust,” Powell said in his speech during the Kansas City Fed’s symposium in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
“Inflation is now much closer to our objective, with prices having risen 2.5% over the past 12 months,” he said. “After a pause earlier this year, progress toward our 2% objective has resumed. My confidence has grown that inflation is on a sustainable path back to 2%.”
Powell did not go into specifics about the timing of when any rate cuts might occur.
The Fed is scheduled to meet three more times this year, in September, November and December.