Powell buoyed by recent inflation data
In an interview with David Rubenstein, chairman of the Economic Club of Washington, D.C., and co-founder of the private-equity firm Carlyle Group, Federal Reserve Chair Jerome Powell stated that recent inflation data has increased confidence that price growth is moving towards the 2% target, noting progress and a focus on labour market cooling. On 11 July, government data showed a decline in the consumer price index and a year-over-year pace slowing to 3%, a positive sign for potential interest-rate cuts in 2024.
Powell indicated that the Fed might start lowering rates before inflation fully returns to 2%, given the current trend. He emphasised balancing inflation and employment mandates, expressing less concern about a recession despite previous predictions. The FOMC has held the federal-funds rate at 5.25%-5.5% since July 2023, with market speculation on rate cuts at upcoming meetings.
Powell condemned the recent assassination attempt on former President Trump and highlighted the importance of monitoring economic and labour market conditions. He stated that officials are now more attentive to signs of cooling in the U.S. labour market, aiming to prevent a recession or unnecessary job losses. Powell's comments reflect a cautiously optimistic outlook for the economy.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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