**Powell: Fed Patient After Rate Cut**

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Post on Nov 08, 2024

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Powell: Fed Patient After Rate Cut, But Don't Get Too Comfortable

The Federal Reserve, led by Chair Jerome Powell, cut interest rates for the first time since 2008 last week. But don't get too comfortable. Powell made it clear that the Fed is going to be patient about future rate moves.

This means the Fed isn't going to rush into cutting rates again just because the economy is showing signs of slowing. They're watching the situation closely, and they're ready to act if things take a turn for the worse.

So, what does this mean for you?

Well, if you're a borrower, you might be able to get a lower interest rate on your loan in the near future. But if you're a saver, you might not see much in the way of returns on your money.

Here's a quick rundown of what happened:

• The Fed cut interest rates by 0.25% to a range of 2.00% to 2.25%.
• This was the first rate cut since December 2008, during the depths of the Great Recession.
• Powell said the Fed would "act as appropriate" to sustain the economic expansion.

But he also stressed that this doesn't mean a rate-cutting cycle is about to begin.

The Fed is "monitoring the situation closely," and it's "prepared to act as appropriate" to support the economy. But the Fed isn't just going to start cutting rates willy-nilly.

What are the factors the Fed is watching?

• Trade tensions: The ongoing trade war between the United States and China is a major source of uncertainty for the global economy. The Fed is watching how this plays out and how it affects businesses and consumers.
• Global growth: Economic growth is slowing around the world, and the Fed is concerned about the impact this could have on the US economy.
• Inflation: The Fed has a target inflation rate of 2%, and it's watching to see if inflation is on track to reach that target.

The bottom line is that the Fed is being cautious.

They're not going to rush into cutting rates just because there's some economic uncertainty. They're going to watch the situation closely and be prepared to act if necessary. But for now, it seems the Fed is content to stay patient.

Remember, this is a developing situation.

Keep an eye on the news and talk to your financial advisor to stay up-to-date on the latest developments.