Powell: Interest rate changes depend on "all the evidence." The key is timing

Asked what the Fed needed to see from the data before making a decision to cut interest rates, Fed chairperson Jerome Powell said it would depend on "the full evidence" between now and the next meeting in September. "We haven't made any decisions about September," Mr. Powell said. If the Fed believes the risks to its dual mandate are perfectly balanced, it would mean taking a more neutral stance, as restrictive policy supports the Fed's inflation target. It would be a waste of resources if the Fed adjusted interest rates before inflation was addressed, and it would be damaging to the labour market if it adjusted too late. The key, he stressed, was to "get the timing right".