NewsBreak: Fed Looking at Measures to Boost Inflation, Powell Says
Investing.com – Federal Reserve Chairman Jerome Powell said the U.S. economy is in a “good place,” though he conceded that the central bank is looking at strategies to stop inflation from slipping too low.
- The central bank is examining strategies that might help it to symmetrically and sustainably achieve 2% inflation, Powell said in opening remarks at a Fed Listens event sponsored by the Board of Governors of the Federal Reserve System in Washington. This would help prevent inflation expectations from slipping too low, as they appear to have done in several advanced economies, he added.
- “While we believe our strategy and tools have been and remain effective, the U.S. economy, like other advanced economies around the world, is facing some longer-term challenges – from low growth, low inflation and low interest rates,” Powell added.
- The odds of a Fed rate cut in October slipped to 77% from 87% a day earlier on Friday, according to Investing.com’s after upward revisions to job gains in the prior months and a at a 50-year low failed to support the recession narrative.
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