The Federal Reserve has started cutting rates and has predicted that more announcements can be made shortly. After the decision, Federal Reserve chief Jerome Powell said that he does not believe that he has delayed the rate cut. At the same time, he clearly said that even though the rates have been cut by half a percent, it does not mean that the work on inflation is over. Read what Powell said.

What did the Federal Reserve chief say?

Powell said that the US economy remains strong and we want to keep it there. He said that the Federal Reserve estimates that GDP can register a growth of 2 percent in the year 2024, while a growth of 2.1 percent is possible in the June quarter.
On the question of waiting for a rate cut, he said that he does not believe that he has waited for a rate cut. He said that today's rate cut clearly shows that he is committed to not being left behind. With a sharp increase in rates, he also said that one should not think that today's decision will be followed by a rate cut in the future as well. While refusing to link the decision to cut rates with the US elections, he said that his decision is for the American citizens.

On the other hand, regarding inflation, Powell said that he does not believe that the mission on inflation has been accomplished. However, he admitted that he is satisfied with the progress made on inflation.

What is the announcement of the Federal Reserve?

The Federal Reserve has announced a cut of half a percent in the Federal Funds Rates after reviewing the policy. After this cut, the main rates have come down to the level of 4.75 percent to 5 percent. Which was earlier between 5.25 percent to 5.5 percent. The Federal Reserve is anticipating a further cut of half a percent in the year 2024.