Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Powell downplays recession concerns amid solid economic growth

Powell downplays recession concerns amid solid economic growth

Cryptobriefing2024/09/19 00:09
By:Cryptobriefing

Key Takeaways

  • Powell remains confident that the economy will be resilient despite external risks.
  • Inflation nears Fed's target, prompting a cautious but flexible policy response.

Share this article

Federal Reserve Chair Jerome Powell today expressed optimism about the US economy during a Federal Open Market Committee (FOMC) press conference, downplaying the likelihood of a recession.

“I don’t see anything in the economy right now that suggests the likelihood of a downturn is elevated,” he said, citing solid growth, cooling inflation, and a strong labor market.

The Federal Reserve adjusted its monetary policy, lowering the target range for the federal funds rate to 4.75%–5%, reflecting progress in controlling inflation. 

“Inflation is now much closer to our objective, and we have gained greater confidence that inflation is moving sustainably toward 2%,” Powell noted.

Although the labor market remains relatively strong, Powell emphasized the need for vigilance. 

“Retail sales show the economy is growing at a solid pace, which should support labor markets,” he said, adding that wages and participation rates are healthy, but the labor market “bears close watching.”

While the Fed remains cautious about easing policy too quickly, Powell stated, “We now see the risks to achieving our employment and inflation goals as roughly in balance.” Despite external risks, he remains confident in the resilience of the economy.

Future policy

Powell stressed that the recent 50 basis point rate cut shouldn’t be seen as the norm, with the Fed adopting a flexible, meeting-by-meeting approach. “We are not on any preset course,” he said, highlighting adaptability in future decisions. 

He also noted broad support among FOMC members for more rate cuts this year, with 19 participants expecting multiple cuts, signaling a strong consensus for further easing to balance inflation and growth.

Share this article

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!