Like the captain of a storm-tossed ship, Fed chair Powell signals land is finally in sight

US FEDERAL Reserve chairman Jerome Powell praised the central bank’s success in quelling inflation without bringing on a recession, and on Wednesday (Jul 31) he appeared to be in the mood to celebrate with a rate cut.

The Fed hinted that it is prepared to cut rates in September even though voting members of the rate-setting committee viewed the economy as relatively strong.

Generally, the central bank begins a rate-cutting cycle only when it fears a recession must be staved off. During an upbeat press conference, Powell spoke a bit like the captain of a storm-tossed ship, with land finally in sight.