www.usnews.com
Open in
urlscan Pro
23.201.182.141
Public Scan
Submitted URL: https://link.mail.beehiiv.com/ss/c/u001.vCgDO57AliT2TsEolkz9L9swZV8dNaiJqY10EoB4LUQfy8QfTMKo8eR8s5VYjxUF7yzvcbOExI2KVEn2NiWYRq...
Effective URL: https://www.usnews.com/news/business/articles/2024-09-30/fed-chair-powell-says-the-us-economy-is-in-solid-shape-with-mo...
Submission: On October 02 via api from BE — Scanned from US
Effective URL: https://www.usnews.com/news/business/articles/2024-09-30/fed-chair-powell-says-the-us-economy-is-in-solid-shape-with-mo...
Submission: On October 02 via api from BE — Scanned from US
Form analysis 1 forms found in the DOM
<form class="EmailInput__Container-sc-1xp4cdv-2 gLDSkk"><span class="text-input__Container-sc-md09ji-0 gykYxH EmailInput__Email-sc-1xp4cdv-0 hXYtPS size-small"><label class="text-input__LabelStyled-sc-md09ji-1 hIxYVP"><input type="text" name="email"
placeholder="Email Address" class="text-input__InputStyled-sc-md09ji-2 jpzloU"></label></span><button class="button__ButtonStyled-sc-1vhaw8r-1 bGXiGV EmailInput__Submit-sc-1xp4cdv-1 gXuhwf size-small" data-tracking-id="email-signup"
data-tracking-placement="promo_newsletter" data-tracking-campaign="Decision Points">Sign Up</button></form>Text Content
Skip to content
News
* News
* Sections
* Cartoons
* Top Stories
* Elections
* Health News
* Politics
* New York
* World Report
* Business News
* Coronavirus
* Games
* Leaders
* Best Countries
* Home
* Overall Rankings
* Rankings Index
* Countries Index
* News
* Resources
* Methodology
* FAQ
* Best States
* Home
* Overall Rankings 2024
* Rankings Index
* States Index
* News
* Resources
* Methodology
* FAQ
* Download 2024 Rankings
* Healthiest Communities
* Home
* Overall Rankings
* Urban, High-Performing
* Urban, Up-and-Coming
* Rural, High-Performing
* Rural, Up-and-Coming
* News
* Resources
* Methodology
* FAQ
* Ideas & Opinions
* Elections
* Racial Equality in America
* Photos
* U.S. News Live
* U.S. News Decision Points
* Leaders
Sign In
TAKE OUR QUIZ »
FIND THE BEST COUNTRY FOR YOU: »
Take Our Quiz
1. Fed Chair Powell Says the US Economy Is in 'Solid Shape' With Gradual Rate
Cuts Coming
2. U.S. News®
3. News
4. Home
FED CHAIR POWELL SAYS THE US ECONOMY IS IN 'SOLID SHAPE' WITH GRADUAL RATE CUTS
COMING
Federal Reserve Chair Jerome Powell has signaled that more rate cuts are in the
pipeline, though their size and speed will depend on the evolution of the
economy
By Associated Press
|
Sept. 30, 2024
By Associated Press
|
Sept. 30, 2024, at 2:01 p.m.
SaveComment
More
Fed Chair Powell Says the US Economy Is in 'Solid Shape' With Gradual Rate Cuts
Coming
More
Ben Curtis
FILE - Federal Reserve Board Chairman Jerome Powell speaks during a news
conference at the Federal Reserve in Washington, Sept. 18, 2024. (AP Photo/Ben
Curtis, File)
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell signaled Monday that more
interest rate cuts are in the pipeline but suggested they would occur at a
measured pace intended to support a still-healthy economy.
His comments, at a conference of the National Association for Business Economics
in Nashville, Tennessee, disappointed the hopes of many investors that the Fed
would implement another steep half-point reduction in its key rate before the
end of the year. The Fed cut its rate by a larger-than-usual half point earlier
this month as it has moved past its inflation fight and pivoted toward
supporting the job market.
The broad S&P 500 stock index initially fell 0.6% after his remarks, but
recovered afterwards to close about 0.4% higher.
“We’re looking at it as a process that will play out over some time,” Powell
said during a question and answer session, referring to the Fed's interest rate
reductions, “not something that we need to go fast on. It’ll depend on the data,
the speed at which we actually go.”
Economists are already pointing to Friday's jobs report as a key piece of data
that could alter the Fed's policy path. If the unemployment rate rises
noticeably or hiring stumbles, officials could consider a sharper rate cut later
this year.
At their last meeting Sept. 18, Fed officials reduced their rate to 4.8%, from a
two-decade high of 5.3%, and penciled in two more quarter-point rate cuts in
November and December. On Monday, Powell said that remains the most likely
outcome.
“If the economy performs as expected, that would mean two more cuts this year,”
both by a quarter-point, Powell said.
In prepared remarks, Powell said the U.S. economy and hiring are largely healthy
and emphasized that the Fed is “recalibrating” its key interest rate, as opposed
to cutting rapidly as it would in an emergency.
He also said the rate is headed “to a more neutral stance,” a level that doesn't
stimulate or hold back the economy. Fed officials have pegged the so-called
“neutral rate” at about 3%, significantly below its current level.
Powell emphasized that the Fed's current goal is to support a largely healthy
economy and job market, rather than rescue a struggling economy or prevent a
recession.
“Overall, the economy is in solid shape,” Powell said in written remarks. “We
intend to use our tools to keep it there.”
Inflation, according to the Fed’s preferred measure, fell to just 2.2% in
August, the government reported Friday. Core inflation, which excludes the
volatile food and energy categories and typically provides a better read on
underlying price trends, ticked up slightly to 2.7%.
The unemployment rate, meanwhile, ticked down last month to 4.2%, from 4.3%, but
is still nearly a full percentage point higher than the half-century low of 3.4%
it reached last year. Hiring has slowed to an average of just 116,000 jobs a
month in the past three month, about half its pace a year ago.
Over time, the Fed’s rate reductions should reduce borrowing costs for consumers
and businesses, including lower rates for mortgages, auto loans, and credit
cards.
“Our decision ... reflects our growing confidence that, with an appropriate
recalibration of our policy stance, strength in the labor market can be
maintained in a context of moderate economic growth and inflation moving
sustainably down to 2%,” Powell said.
Since the Fed’s rate cut, many policymakers have given speeches and interviews,
with some clearly supporting further rapid cuts and others taking a more
cautious approach.
Austan Goolsbee, president of the Fed’s Chicago branch, said that the Fed would
likely implement “many more rate cuts over the next year.”
Yet Tom Barkin, president of the Richmond Fed, said in an interview with The
Associated Press last week, said that he supported reducing the central bank’s
key rate “somewhat” but wasn’t prepared to yet cut it all the way to a more
neutral setting.
A big reason the Fed is reducing its rate is because hiring has slowed and
unemployment has picked up, which threatens to slow the broader economy. The Fed
is required by law to seek both stable prices and maximum employment, and Powell
and other policymakers have underscored that they are shifting to a dual focus
on jobs and inflation, after centering almost exclusively on fighting price
increases for nearly three years.
Copyright 2024 The Associated Press. All rights reserved. This material may not
be published, broadcast, rewritten or redistributed.
PHOTOS YOU SHOULD SEE - SEPT. 2024
View All 24 Images
JOIN THE CONVERSATION
See Comments
Tags: Associated Press, business, Tennessee, economy
SmartAsset.com
Read More
GALLERIES
America 2024
The Best Political Cartoons on Joe Biden
Photos
Photos: Vance and Walz Debate
Photos
Photos: Jimmy Carter Over the Years
Photos
Photos: Hurricane Helene
U.S. News Decision Points
Your trusted source for the latest news delivered weekdays from the team at U.S.
News and World Report.
Sign Up
Sign in to manage your newsletters »
Sign up to receive the latest updates from U.S News & World Report and our
trusted partners and sponsors. By clicking submit, you are agreeing to our Terms
and Conditions & Privacy Policy.
YOU MAY ALSO LIKE
THE 10 WORST PRESIDENTS
Not all U.S. presidents are missed once they leave the White House.
U.S. News StaffFeb. 23, 2024
THE BEST CARTOONS ON DONALD TRUMP
Oct. 1, 2024, at 3:49 p.m.
JOE BIDEN BEHIND THE SCENES
Visual moments from the 46th U.S. presidency.
Aug. 20, 2024
PRIVATE SECTOR JOBS BOUNCE BACK IN SEPT.
The increase of 143,000 jobs was above expectations and showed hiring was
widespread across industries.
Tim SmartOct. 2, 2024
HE SAID, SHE SAID: ON THE TRAIL
‘JD crushed it! Walz was a Low IQ Disaster.’ Trump attacked Walz’s vice
presidential debate performance Tuesday, while Harris launched a new ad focused
on health care.
Cecelia Smith-SchoenwalderOct. 2, 2024
VANCE, WALZ CLASH OVER JAN. 6 IN DEBATE
A mostly good-natured verbal brawl took a turn toward the end, when Sen. JD
Vance and Gov. Tim Walz responded to questions around the Jan. 6 riot at the
Capitol during their vice presidential debate.
Olivier KnoxOct. 2, 2024
KEY TAKEAWAYS: WALZ-VANCE DEBATE
The stakes for Vance and Walz were about as high as they possibly could be on
Tuesday – particularly given that the event was the last scheduled debate before
Election Day.
Cecelia Smith-SchoenwalderOct. 2, 2024
TRUMP’S LATEST ATTACK: NEW LOW?
Trump’s latest Harris insults drew rebukes – even from some Republicans.
Cecelia Smith-SchoenwalderOct. 1, 2024
IRAN STRIKES ISRAEL AS WIDER WAR LOOMS
Iran claimed responsibility for a barrage of missiles fired at Israel that
threatens to escalate the heightening conflict into a regional war.
Aneeta Mathur-Ashton Oct. 1, 2024
JOB OPENINGS INCREASE SLIGHTLY
The labor market is considered closer to balance between openings and available
workers than it has been in the past couple of years.
Tim SmartOct. 1, 2024
Load More
Best Countries
Overall Rankings
Rankings Index
Countries Index
Countries News
Methodology
Countries FAQ
Best States
Overall Rankings
Rankings Index
States Index
States News
Methodology
Rankings Download
States FAQ
Healthiest Communities
Overall Rankings
Urban, High-Performing
Urban, Up-and-Coming
Rural, High-Performing
Rural, Up-and-Coming
Methodology
Communities FAQ
News
Politics
World
Business
Science
Health News
Cartoons
Games
U.S. News Decision Points
Photos
America 2024
Events
Best Countries
Best States
Healthiest Communities
News
U.S. News Decision Points
Photos
America 2024
Events
About U.S. News
Editorial Guidelines
Contact
Press
Advertise
Newsletters
Jobs
Site Map
Store
Copyright 2024 © U.S. News & World Report L.P.Terms & Conditions/Privacy
Policy/U.S. State Privacy Notice/Your Privacy Choices California Consumer
Privacy Act (CCPA) Opt-Out Icon