TechFlow news, Federal Reserve Chair Powell said at the press conference following the FOMC meeting that the Fed will continue to fully focus on its dual mandate, and risks around employment and inflation are moving toward a better balance.
Significant progress has been made over the past two years in achieving both employment and inflation goals, and the labor market has become more balanced.
Inflation data from the second quarter have strengthened the Fed's confidence, but greater confidence in inflation is still needed. Powell noted that if the economy remains strong, rates will be held steady as necessary; if the labor market unexpectedly weakens, the Fed stands ready to take responsive measures.
He emphasized that cutting rates too early could reverse the progress made on inflation, but the Fed is gradually approaching the time when it can lower interest rates.
Regarding a potential rate cut in September, Powell said it is "under consideration," but no decision has been made yet for the September meeting. A rate cut would depend on increased confidence in inflation; if inflation declines as expected and the labor market remains stable, a rate cut in September could occur.
Powell also revealed that there was indeed an in-depth discussion about rate cuts during this meeting, with some members discussing the possibility of taking rate-cutting action at this meeting. However, the overall sentiment of the committee was to act at the next meeting, rather than this one, provided data support such a move.
