{"id":7345,"date":"2026-05-28T00:45:46","date_gmt":"2026-05-28T00:45:46","guid":{"rendered":"https:\/\/stock999.top\/?p=7345"},"modified":"2026-05-28T00:45:46","modified_gmt":"2026-05-28T00:45:46","slug":"powell-warns-not-to-count-on-a-december-rate-cut-just-yet-the-fed-is-extremely-divided-and-a-further-cut-is-not-a-foregone-conclusion-far-from-it","status":"publish","type":"post","link":"https:\/\/stock999.top\/?p=7345","title":{"rendered":"Powell warns not to count on a December rate cut just yet\u2014the Fed is extremely divided, and a further cut is \u2018not a foregone conclusion. Far from it\u2019"},"content":{"rendered":"

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Federal Reserve Chair Jerome Powell cautioned markets on Wednesday not to assume another rate cut is guaranteed in December, saying the Fed governors had \u201cstrongly differing\u201d views on how to proceed amid rising inflation risks and a softening labor market.\u00a0<\/p>\n

\u201cA further reduction in the policy rate at the December meeting is not a foregone conclusion\u2014far from it,\u201d Powell said during his post-meeting press conference.<\/p>\n

The Fed cut its benchmark interest rate by a quarter percentage point to a range of 3.75% to 4%, citing cooling labor conditions and still-elevated inflation.\u00a0<\/p>\n

Powell described the decision as a \u201cstep toward a more neutral policy stance,\u201d but emphasized\u2014as he does often\u2014that there is \u201cno risk-free path\u201d forward.\u00a0<\/p>\n

While inflation has fallen sharply from its 2022 highs, Powell noted that price pressures have recently picked up in goods categories, partly owing to higher tariffs. The Fed now sees near-term inflation risks tilted to the upside even as job market momentum fades.<\/p>\n

\u201cConditions in the labor market appear to be gradually cooling,\u201d he said, adding that \u201cdownside risks to employment have increased in recent months.\u201d<\/p>\n

Some officials on the Federal Open Market Committee worry further easing could reignite inflation, while others fear keeping policy too tight could tip the economy into a sharper slowdown.<\/p>\n

\u201cThe risks are to the upside for inflation and to the downside for employment,\u201d Powell said. \u201cYou can\u2019t do both of those at once with one tool.\u201d<\/p>\n

The Fed also announced plans to end the runoff of its balance sheet\u2014ending what\u2019s called \u201cquantitative tightening\u201d\u2014as of Dec. 1, after shrinking its securities holdings by $2.2 trillion over the past three and a half years. Powell said recent pressures in money markets indicate the system has reached \u201cample reserve\u201d conditions.<\/p>\n

For now, Powell stressed, the Fed will stay data-dependent.<\/p>\n

\u201cWe remain well positioned to respond in a timely way to potential economic developments,\u201d he said. \u201cPolicy is not on a preset course.\u201d<\/p>\n

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#Powell #warns #count #December #rate #cut #yetthe #Fed #extremely #divided #cut #foregone #conclusion<\/p>\n","protected":false},"excerpt":{"rendered":"

Federal Reserve Chair Jerome Powell cautioned markets on Wednesday not to assume another rate cut…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[245],"tags":[13247,11829,787,13244,9070,518,11024,1508,8760,4297,13246,2456,2976,2675,126,551,372,13245],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/7345"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7345"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/7345\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}