Powell “Peak of interest rate reached… Now sufficient room for cuts”

Powell, Chair Of The Fed, Starting To Move Under Pressure From Trump (Source: FT)

Jerome Powell, Chair Of The Federal Reserve (Fed), Announced That The Benchmark Interest Rate Has Already Peaked And There Is Sufficient Room For A Rate Cut In The Future. On The 24th (Local Time), Chair Powell Made This Statement In The Semi-Annual Monetary Policy Report Hearing Held By The U.S. Senate Banking Committee, Indicating The Possibility Of A Shift In The Fed's Monetary Policy Stance.

He Emphasized, “The Benchmark Interest Rate Has Peaked At Its Current Level, And We Will Carefully Monitor Economic Indicators To Decide Whether To Cut Rates,” Adding, “Now Is The Time We Are Meeting The Conditions For A Rate Cut.”

This Statement, Coupled With Signs Of Easing Inflation Pressure, Is Further Raising Market Expectations For A Rate Cut. Within The Fed, Some Officials Have Recently Opened Up The Possibility Of A July Cut, And Chair Powell’s Statement Is Seen As Supporting The Justification For A Future Monetary Easing Shift.

The Market Is Closely Watching This Statement To See If The Fed Will Enter A Full-fledged Rate Cut Cycle.