[Music] Now to the economy as expected the Federal Reserve is leaving interest Rates unchanged rates are the highest They've been in more than 20 years just Two months ago the FED called for three Rate Cuts this year but Fed chair Jerome Poell now says the path forward is Uncertain due to inflation we've stated That we do not expect that it will be Appropriate to reduce the target range For the federal funds rate Until we have gained greater confidence That inflation is moving sustainably Toward 2% so far this year the data have not Given us that greater Confidence CBS News senior Business and Technology correspondent Jolene Kent Joins me now uh to discuss the fed's Decision joling Um okay we're not talking about Cuts What about a raise is anybody talking About rates going up yeah that was a big Question at the Federal Reserve presser With chairman Powell today and the Question was basically answered with a No that is not what some is not Something that they discussed today uh In the policy meeting that they held With all of the fomc in fact he says It's unlikely uh Powell said the next Decision will be a rate hike uh he said He needs to see more persuasive evidence
And that is not what we are seeing right Now but of course it's a great question To ask because we've seen other fed Governors uh namely Michelle Bowman Bring this up as a possibility because Inflation has remained so sticky Stubborn and high for 3 months and Counting now not getting any closer to The fed's 2% Target but Powell says that Is highly unlikely at this point and now Here's a question the Fed chair will be Asked every morning and every night from Now until the election which is will the Election affect the central bank's uh Decisions what was his Response yeah he was very emphatic and Tripled down on his response I'll let Him speak for himself right here listen Up it's hard enough to get the economics Right here these are difficult things And if we're if if we were to take on a Whole another set of factors and and use That as a new filter it would reduce the Likelihood we'd actually get the Economics right so that's how we think About it around here and you know we're At peace over it we we know that we'll Do what we think is the right thing when We think it's the right Thing he also cited five years of Federal Reserve pressors and U you know Pressor releases saying that this is not How the Federal Reserve operates it is Not a political operation and the
Political reporter pressed him smartly Saying well what about a rate cut in September versus December would that Have any bearing in term would politics Have any bearing on that and he was Infatic yet again saying their job is to Focus on what to do when it's right for The economy when they determine that is John I've never heard a Fed share say We're at peace over here it's very Zen Of him Jolene k jene Kent in Los Angeles Thank you
