US Fed chair signals potential interest rate cuts, citing shift in economic conditions

According to recent statements by Jerome Powell, Chairman of the Federal Reserve, the time has come for the US to start cutting interest rates. Powell emphasized that the direction of travel is clear, but the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks. He also acknowledged recent progress on inflation, citing a weakening labor market as a factor contributing to diminishing inflation risks. The statements were met with a positive response from the stock market, with all three major indices on Wall Street experiencing a sharp increase.