Jerome H. Powell made it clear that the Federal Reserve will cut rates on Sept. 18, as the central bank turns the corner in its fight against inflation.According to The New York Times, Federal Reserve Chair Jerome H. Powell announced on Friday that the central bank will cut interest rates on September 18. This decision marks a significant shift in the Fed’s approach to fighting inflation.

During his highly anticipated speech at the Kansas City Fed’s annual conference in Jackson Hole, Wyoming, Powell made it clear that the Fed is prepared to adjust policy in order to protect the job market and maintain a stable economy. While he did not specify the exact size of the rate cut, Powell emphasized that the Fed is committed to supporting a strong labor market and achieving price stability.

This speech is the strongest indication yet that the Fed is changing course in its efforts to combat inflation. After keeping interest rates at a high level for over a year, officials now have enough confidence to lower rates at their upcoming meeting. This move comes as inflation has slowed and the job market has shown signs of weakening, making it unnecessary for the Fed to continue applying the brakes to the economy.

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