We've constantly been hearing one of the Top issues for American voters is the Economy and today fed Reserve chair Jerome Powell gave his annual remarks of The fed's yearly retreat in Jackson Hall Wyoming he outlined the current status Of the US economy and how the Central Bank plans to proceed moving forward the Time has come for policy to adjust the Direction of travel is clear and the Timing and pace of rate Cuts will depend On incoming data the evolving Outlook And the balance of risks We will do everything we can to support A strong labor market as we make further Progress toward price Stability CBS News contributor Javier D Joins us now to break all of this down For us so everybody was watching for These comments these were some of his Strongest comments sort of the crystal Ball where would he go where won't he What did he say so this is a Humdinger Of a speech it was actually stronger it Was way stronger than I thought he sort Of one analyst described as power Metamorphosing into this full-blown Dove The time has come it's almost like that Old rock song from Midnight Oil but Basically he's saying um you know it's Rare the occasion that a central Banker Actually like tells the market what it Wants to hear in a very straightforward Way but Powell did that today he
Basically put the September rate Cuts uh On the table and he also hinted at the Fact that the balance of risks have Tilted away or ever so slightly away From inflation and much more toward Labor market a widespread labor market Weakness widespread layoffs that sort of Thing that's what the the FED does not Want he explicitly said we don't want Any more labor market weakness it's not A factor in inflation um they would just Prefer and particularly in the light of The data that we got earlier this week Which basically was a revision a jobs Market revision which took almost a Million jobs off the board, um yeah it Just really does seem like the path is Clear and they're acknowledging that Price stability is moving in the Direction we want it but the jobs Market Their other second mandate which is full Employment is now softer than they would Like it to be They've come under some recent criticism That maybe they took too long that September is too late absolutely I'm not Expecting that Powell would have gone up There today and said look we got it Wrong we should have cut rates earlier But but did he address that all did he Allude to that it implicitly Acknowledged look by keeping rates Higher for longer the D the the danger Was the Fed was flirting ever so closely
To committing a policy error which is Rates are just too tight and they're Doing that in the service of creating or Correcting a mistake that they made Early on which is okay don't worry about Inflation it's transitory it's going to Go away um so now the based on what he Said look like he's making it clear that You know the FED really recognizes that The econom is in a different place um we Are far away from the 9% inflation print That we got in 2022 not quite 2% just Yet but moving in that Direction the FED of course and Powell They're always going to say we operate Outside the bounds of politics but we Don't live in a world in which things Can exist outside of politics anymore I Mean how how do the two kind of coincide I mean are there sort of two lines and Sometimes they they yeah the TW shall Meet so though the FED studiously Asserts as monetary Independence it's Like look we make our decisions based on Data um all monetary policy decisions End up being political and in a elction Year it's especially fraud so you know Back in 20 1992 George JW Bush famously Threw shade on Alan Greenspan because he Felt like you know you could help me out On the economy by easing a little bit And anything that happens during an Election year is inevitably sort of a Reflection on the incumbent so if you
Cut it's almost an an admission that the Economy is weak or at least needs some More juice but if you keep it too tight It's almost um a barrier for businesses And consumers to sort of continue to do What they need to do which is to grow And spend have your DB always good to See you thank absolutely
