Fed Chair Powell: At Some Point, We Will Resume Rate Cuts

Federal Reserve Chair Jerome Powell stated that at some point, rate cuts will resume. He noted that budget cuts have limited some economic data available to federal agencies, but this has not yet affected the Fed’s ability to fully assess the strength and direction of the U.S. economy. However, the trend of declining data availability is concerning. While attending a Senate Banking Committee hearing, Powell responded to a senator’s question by saying, “I don’t want anyone to think that the data has deteriorated to the point where it’s difficult for us to understand the economy. Although it’s not perfect, the direction it’s heading is worrisome.”