Jerome Powell cuts rates by 50 bp, touts healthy labor market and inflation numbers in press conference, hints at more rate cuts.

“The risks to upside inflation have declined, but the risks to a weakening labor market have increased somewhat,” said Fed Chair Jerome Powell in a post-FOMC press conference. “That said, our decision today reflects our confidence that labor market strength can be sustained. Over the past three years, inflation has been above our 2 percent target and labor markets have been somewhat tight. We will continue to make policy adjustments to support the economy and labor market while easing inflation.”

“Seventeen of the 19 members of the FOMC judged that three or more rate cuts are needed this year. A few were of the opinion that four or more rate cuts are needed.” “We also recognized that inflation has eased and unemployment has risen, so the time is right to cut rates. We believe that if we wait too long to cut rates, it could put the brakes on the easing of inflation, and if we wait too late, it could worsen employment.”

“We have taken a very cautious approach to rate cuts, and we should not expect any unconditional cuts in the future. We will make this decision based on both objective data and economic conditions. It is not appropriate to expect continued rate cuts based on today's decision or the dot plot.”