Fed may cut interest rates at September meeting: Powell

Federal Reserve Chairman Jerome Powell

Federal Reserve Chairman Jerome Powell said on Wednesday that the central bank might lower interest rates at its next meeting in September if economic data continues on its current path.

“If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September,” Powell said.

He added that central bankers would be “data dependent, but not data-point dependent” in determining when to cut rates.

Recent economic data has pointed toward inflation data falling back toward the central bank’s 2% target, while the unemployment rates have crept up above 4%.

The Fed said in its policy statement Wednesday that it is attentive to risks on “both sides of its dual mandate,” which is maximum employment and stable prices.

The personal consumption expenditures price index — the Fed’s preferred inflation gauge — showed a rise of 2.5% year over year in June.