Fed's Powell Declares 'Time Has Come' for Rate Cuts

Federal Reserve Chair Jerome Powell gave his strongest signal yet that interest-rate cuts are coming soon, saying the central bank intends to act to stave off a further weakening of the U.S. labor market. From a report: "We do not seek or welcome further cooling in labor market conditions," Powell said in prepared remarks for a speech at the central bank's annual gathering in the Grand Teton National Park on Friday. "The time has come for policy to adjust." Fed officials' next policy meeting is scheduled for Sept. 17-18. They are widely expected to lower the benchmark federal-funds rate at that meeting. Powell's comments Friday all but bring to a conclusion the Fed's historic inflation-fighting campaign, one that Powell amplified from the same stage two years ago when he signaled his readiness to accept a recession as the price of lowering inflation. The Fed held rates steady at its most-recent meeting in late July, though several officials saw a case for cutting at that meeting. Two days later, the Labor Department reported that unemployment rose to its highest rate in nearly three years. Inflation, while still above the Fed's 2% target, has been falling steadily in recent months.

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