The Federal Reserve announced last week a rate cut of a quarter percent to 4.5%, and while it is a move in the right direction, questions still remain about what the future holds.
Federal Reserve Board Chairman Jerome Powell recently shed some light on the matter.
According to Powell, “This further recalibration of our policy stance will help maintain the strength of the economy and the labor market and will continue to enable further progress on inflation as we move toward a more neutral stance over time. We know that reducing policy strength too quickly could hinder progress on inflation. At the same time, reducing policy restraint too slowly could weaken economic activity and employment. In considering additional adjustments to the target range for the Federal Funds Rate, the committee will carefully assess incoming data involving outlooks in the balance of risks. We are not on any pre-set course. We will continue to make our decisions meeting by meeting.”
The Fed Chair went on to acknowledge the effect the Fed’s actions have on communities, families, and businesses across the country. That includes rural America, whose lending rate currently falls within 4-8% for the most part.
