Fed Chairman gives positive assessment of US economy

(CPV) – On December 4, Chairman of the US Federal Reserve (FED) Jerome Powell commented that the US economy is stronger than when the Central Bank began cutting interest rates in September. This means that the FED's interest rate reduction process may slow down.

FED Chairman Jerome Powell is optimistic about the US economy. (Photo: Reuters)

Speaking in a press conference hosted by the New York Times on the same day, FED Chairman Jerome Powell said: "We want to send a strong signal that we will support the labor market if this area continues to weaken."

"The economy is strong, and even stronger than we expected in September," the Fed chairman stressed.

The positive news, according to Mr. Powell, is that the Fed can be more careful in setting a neutral interest rate - an interest rate that neither promotes nor inhibits growth.  

Previously, the FED had cut interest rates in the last two meetings. At the policy meeting on November 7, the FED cut interest rates by 0.25%, further easing monetary policy in the context of inflation in the world's largest economy continuing to cool down.

This is the second interest rate cut by the US Central Bank in 2024. In a statement, the FED said that policymakers in this agency agreed to lower the key lending rate to a range of 4.5% - 4.75%.

This interest rate cut follows the Fed's move in September this year, when the agency began its monetary policy easing cycle with a decision to cut interest rates sharply by 0.5%.

The Fed has another meeting in 2024, on December 17-18. The market still expects the agency to continue cutting interest rates by another 0.25% and then cut interest rates more slowly.

Ahead of the meeting, the market will receive information and data on employment and inflation in November. According to the CME Group's Fedwatch tool, investors predict the probability of the Fed cutting interest rates in December and two more cuts in 2025.

Notably, FED Governor Christopher Waller voiced support for a December interest rate cut, citing that interest rates are still at levels that are holding back economic growth. However, this decision still depends on the development of important economic data in the next two weeks./.

Source: https://dangcongsan.vn/the-gioi/tin-tuc/chu-tich-fed-danh-gia-tich-cuc-ve-kinh-te-my-685344.html