“We are well positioned to determine the extent and timing of additional adjustments based on incoming data, the evolving outlook and the balance of risks,” Powell said at a press conference.
The Fed cut rates for the third time this year by 25bps to 3.5%-3.75%.
Declining to provide clear guidance on whether another interest rate cut is in the near future, Powell said, “I would note that after cutting our policy rate by 75 basis points since September and 175 basis points since last September, the Fed funds rate is now within a broad range of its neutral value estimate and we are well positioned to wait and see how the e-economy plays out.”
“Monetary policy is not on a preset course, and we will take our decisions on a meeting-by-meeting basis,” he added.
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Powell, however, clarified that the Fed’s next move is unlikely to be a rate hike, although that is not the base case reflected in the central bank’s policymakers’ new projections.
“I don’t think a rate hike is anyone’s base case,” he said.
The US Federal Reserve’s decision to cut interest rates was not an easy one, Powell said, noting the competing tensions between inflationary risks and a weakening job market. “It’s a close call. We have to make decisions,” he told reporters.
(with inputs from agencies)
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