Chairman Powell says no paths are “risk-free,” and that the correct move is “not incredibly obvious.”
The Federal Reserve lowered interest rates by a quarter of a percentage point on Wednesday in its first rate cut of the year. Federal Reserve Chair Jerome Powell spoke at a press conference announcing the decision, saying that the fluctuating economy and rising unemployment make it difficult for the panel to know what next steps should be to help stabilize lending.
“There are no risk-free paths… It’s not incredibly obvious what to do,” Chairman Powell said at the end of a two-day policy meeting. “We have to keep our eye on inflation at the same time, we cannot ignore… maximum employment.”
“You see minority unemployment going up. You see younger people… more susceptible to economic cycles… in addition to just overall lower payroll job creation that shows you that at the margin, the labor market is weakening,” he added. “We don’t need it to soften anymore.”
As the Lord Leads, Pray with Us…
- For discernment for members of the Federal Reserve as they assess the nation’s economy.
- For Chairman Powell to seek God’s wisdom as he oversees the Federal Reserve Board.
Sources: Reuters, MSN, Financial Times
