TechFlow news — On August 23, according to The Wall Street Journal, Federal Reserve Chair Jerome Powell sent his strongest signal yet for an interest rate cut, stating the Fed intends to act to prevent further weakening in the U.S. labor market. Speaking at the Jackson Hole symposium on Friday, Powell said: “We do not seek or welcome further cooling in labor market conditions. It is time to adjust policy.”
Widely expected to cut rates at its September meeting, the Fed's shift marks a near-end to its historic battle against inflation. Two years ago, Powell used the same stage to declare his willingness to accept a recession as the price for bringing inflation down. This year, his tone was far less ambiguous than during the press conference following the previous meeting, when he said the Fed needed more data to gain confidence that inflation was truly subsiding. Friday’s speech signaled that he now believes that confidence has been achieved.
