Powell: "May need to slow the pace of policy adjustments due to lack of data…Growing caution within the Fed"

JH Kim

Summary

Federal Reserve Chair Jerome Powell said the pace of monetary policy adjustments could be slowed due to a gap in economic data caused by the government shutdown.
Powell said that a cautious view to ease the pace of rate cuts is spreading within the Fed.
He explained that some Fed officials are taking the position that at least one cycle should be observed, and that a wait-and-see stance is strengthening.

Jerome Powell (Jerome Powell), chair of the U.S. Federal Reserve (Fed), said he could slow the pace of monetary policy adjustments citing a gap in economic data caused by the government shutdown. He added that a mood to ease the pace of rate cuts is growing within the Fed.

On the 29th (local time), according to economic news channel Walter Bloomberg, Powell said at a press conference, "During the shutdown period, key data such as employment indicators were not sufficiently available," and "We may need to slow the pace of policy (interest rate) adjustments. I hope to be able to obtain more data by December."

He went on to explain, "More and more Fed officials want to slow down rate cuts," and "After two consecutive rate cuts, some officials had been inclined to take a wait-and-see stance, and now the view that at least one cycle should be waited for is spreading."