Fed Chair Jerome Powell refrained from signaling any clear path for rate policy during his appearance at the ECB’s Sintra forum, emphasizing that a July cut is neither guaranteed nor ruled out. “I really can’t say,” Powell responded when asked whether July is too soon for a move. “We are going meeting by meeting,” he added, avoiding any pre-commitments.
Powell’s remarks come as markets increasingly price in a September rate cut, with futures now assigning over 95% probability. However, the chair maintained that policy decisions will hinge on how key indicators — including inflation, labor market, and consumer behavior — evolve in the coming weeks. “I wouldn’t take any meeting off the table or put it directly on the table,” he said, reiterating that flexibility remains essential.
In broader comments, Powell emphasized the Fed’s core mandate, saying, “All I want — and all anybody at the Fed wants — is to deliver an economy that has price stability, maximum employment, financial stability.” He added that his focus remains on ensuring a healthy handoff to his eventual successor.
