Powell says that “the transformation of risk balance” may ensure that prices are cut off soon

In a high -level speech that will be closely monitored at the White House and in Wall Street, Powell said there are risks to both increased unemployment and stubborn high inflation. This places the Federal Reserve in a difficult place, because it usually reduces its short-term rate to enhance employment, while keeping it high-or raising it-to fight inflation.

“The stability of the unemployment rate and other labor market measures allows us to move forward and think about changes in our position on politics.” This indicates that the Federal Reserve will continue to evaluate jobs and inflation data as it decides whether the prices will be reduced, including at its next meeting from 16 to 17 September.

“However, with policy in restrictions, basic expectations and the variable risk balance may require modifying our position on politics,” added a more direct sign that Powell is considering reducing the rate of what he presented in the previous comments.

However, Powell’s statements indicate that the Federal Reserve will continue carefully in the coming months and will make its average decisions based on how inflation and unemployment develop in the coming months. This might frustrate the financial markets, which were hoping to obtain more clear signals about the movements of the upcoming Federal Reserve Bank, and President Donald Trump, who photographed Powell to not cut prices sooner.

Powell spoke at the annual economic symposium at the Federal Reserve in Jackson Hall and Wyoming, a conference with about 100 academics, economists, and central bank officials from all over the world.

Powell spoke where the markets are largely expected to reduce prices in September, according to futures prices, although these possibilities have declined this week. Trump has Repeatedly As for price discounts, on the pretext that there is no “inflation” and the saying that the cuts would reduce the interest payments of the government on its debts of $ 37 trillion.

Trump and his allies have formed attacks on the Federal Reserve, including this week by inviting the Federal Reserve Governor, Lisa Cook, to resign, after the Trump official claimed that it may have committed fraud on the mortgage.

In his statements, the Federal Reserve Chair confirmed that the customs tariff raises inflation and can push it up in the coming months. He also suggested that the labor market is not clearly weakening in a way that will push the Federal Reserve Bank to reduce borrowing costs, which may enhance growth and employment.

Powell said: “The effects of definitions on consumer prices are now clearly clear. We expect that these effects will accumulate in the coming months, with high uncertainty about timing and sums.”

Inflation has infiltrated upright in recent months, despite a decrease from 9.1 % peak three years ago. The definitions did not stimulate inflation as much as some economists worried, but they started raising the prices of imported goods such as furniture, games and shoes.

Consumer prices increased by 2.7 % In July last yearAbove the federal reserve goal of 2 %. With the exception of the flying food and energy categories, the basic prices increased by 3.1 %.

Regarding the labor market, Powell pointed out that even with the slowdown of employment this year, the unemployment rate remains low. He added that with the decrease in migration sharply, there is a need for fewer jobs to maintain unemployment in selection.

Powell said that with slow employment, Powell rose.

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