Fed’s Powell says ‘time has come’ to begin cutting interest rates

Federal Reserve Chair Jerome Powell sent a straightforward message to markets in a key speech on Friday, saying “the time has come” for the central bank to begin lowering interest rates.

Speaking at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyo., Powell said: “The time has come for policy to adjust.”

“The direction of travel is clear,” Powell added, “and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

Powell’s speech comes just over three weeks out from the Fed’s Sept. 17-18 meeting, which should see the central bank announce its first interest rate cut since 2020.

 

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