“We are well positioned to determine the extent and timing of additional adjustments based on the incoming data, the evolving outlook and the balance of risks,” Powell said at a press conference.
The Fed cut rates by 25bps a third time this year to 3.5%-3.75%.
Declining to provide a clear guidance on whether another interest rate cut lies in the near future, Powell said, “I would note that having reduced 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 estimates of its neutral value and we are well positioned to wait to see how the economy evolves.”
He added, “monetary policy is not on a preset course, and we will make our decisions on a meeting by meeting basis.”
Powell however clarified that the Fed’s next move is unlikely to be a rate hike, given that is not the base case reflected in new projections from central bank policymakers.
“I don’t think a rate hike is anyone’s base case,” he said.The decision of the US Federal Reserve to lower interest rates was not an easy one, Powell said, noting the competing tensions between inflation risks and a weakening jobs market. “It’s a close call. We have to make decisions,” he told reporters.
(With inputs from agencies)
