MNI BRIEF: Fed's Powell-Could Cut Faster If Jobs Weaken
Fed Chair says decisions to be made on meeting by meeting basis.
Federal Reserve Chair Jerome Powell said Wednesday the FOMC is prepared to cut interest rates more aggressively if economic conditions deteriorate more rapidly than forecast.
"If the labor market were to weaken or inflation were to fall more quickly than expected, we are prepared to respond," he told reporters during his post-meeting press conference. "We are not on a preset course. We will continue to make decisions meeting by meeting."
Powell touted recent progress on inflation and said the job market has come into better balance after having been overheated.
"This recalibration will help maintain the strength and the labor market and will (help) to enable further progress on inflation as we begin the process of moving toward a more neutral stance," Powell said. (See MNI POLICY: Fed Increasingly Convinced It Defeated Inflation)