“If the economy evolves broadly as expected, policy will move over time toward a more neutral stance,” he said.
He stressed that the Federal Open Market Committee (FOMC) would continue to make decisions meeting by meeting, relying on incoming economic data. Powell clarified that the committee has no “preset course” and will adjust, as necessary.
The Federal Reserve’s current benchmark rate, lowered earlier this month to a range of 4.75 percent to 5 percent, is still seen as restrictive to economic activity. Investors remain uncertain about the pace of future rate cuts, which Powell left open for discussion.
During a Q&A session, Powell mentioned that the FOMC’s September projections indicated quarter-point rate cuts could be made in the upcoming November and December meetings.
He cautioned that final decisions would depend on future economic data, stating, “This is not a committee that feels like it’s in a hurry to cut rates quickly.”