Federal Reserve's Powell: Further rate cuts are appropriate if inflation eases

Odaily Planet Daily News: Fed Powell reiterated on Wednesday that she expects the Federal Reserve to possibly cut short-term interest rates later this year if the economy performs in line with her expectations for easing inflation and stable employment. In a speech prepared for an event at the Philadelphia Chamber of Commerce, Powell stated, “My baseline outlook is quite moderate,” expecting inflation to fall back to around 2% by the end of the year, with the labor market stabilizing and economic growth remaining at about 2%. She pointed out, “If all this happens, it may be appropriate to make some modest adjustments to the federal funds rate later this year.” Regarding the labor market, Powell reiterated, “The labor market is clearly slowing but not collapsing.” She sees risks rising, which is one of the key reasons she supported the FOMC’s 75 basis point rate cut last year. (Jin10)