Fed Head Jerome Powell states central bank in no hurry to arrive 'neutral rate'
Date
11/17/2024 3:07:35 AM
(MENAFN) Federal Reserve Head Jerome Powell stated Thursday that the central bank's lawmakers aren't in a hurry to lower interest volumes to the so-called "neutral rate" and are comfortable making changes to volumes as it looks to bring inflation to its goal.
Throughout an event at the Dallas Regional Chamber, Powell stated in his initial comments, "We are moving policy over time to a more neutral setting. But the path for getting there is not preset. In considering additional adjustments to the target range for the federal funds rate, we will carefully assess incoming data, the evolving outlook, and the balance of risks."
"The economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully," Powell clarified, adding "Ultimately, the path of the policy rate will depend on how the incoming data and the economic outlook evolve."
In a question-and-answer meeting with Washington Post columnist Catherine Rampell, Powell was inquired regarding how the Federal Reserve finds out when it has hit the neutral volume and his prior comments that "we know it by its works."
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