Fed's Mouthpiece: Powell Retains the Right to Choose When to Cut Interest Rates

"Federal Reserve mouthpiece" Nick Timiraos stated that Federal Reserve Chairman Jerome Powell hinted, given the resumption of declining inflation and signs of cooling in the labor market, the Fed is paying more attention to when to cut interest rates. "High inflation is not the only risk we face," Powell said in a speech prepared for delivery to the Senate Banking Committee on Tuesday morning. Powell said that the economy has made "considerable progress" in reducing inflation, and the job market looks as "strong but not overheated" as before the pandemic. However, he hardly changed any expectations about when central bank might start cutting interest rates. "We continue to decide meeting by meeting," he said.