Federal Reserve chair Jerome Powell speaks with Spelman College president Helene Gayle. Photo: YouTube
Federal Reserve chair Jerome Powell got the final word Friday before the Fed enters a quiet period ahead of the next policy meeting.
Driving the news: In a brief speech, he tried to tamp down the "interest-rate-cuts-are-coming" narrative that drove financial market excitement this week.
What they're saying: "It would be premature to conclude with confidence that we have achieved a sufficiently restrictive stance, or to speculate on when policy might ease," Powell said. "We are prepared to tighten policy further if it becomes appropriate to do so."
He added that the Fed "is moving forward carefully, as the risks of under- and over-tightening are becoming more balanced."
Why it matters: A slew of Fedspeak — including, notably, Fed governor Christopher Waller — has dealt with the prospect of rate cuts in 2024.
However, the Fed chief seems to be taking a more measured approach: A near-term easing is not on the table.
Powell said the Fed is committed to "keeping policy restrictive until we are confident that inflation is on a path" to its target.
Of note: Powell spoke at Atlanta this afternoon before an audience of students and faculty at Spelman College — the HBCU from which his colleague, Fed governor Lisa Cook, graduated some 40 years ago. It's the first time a Fed chair has visited the university.
One moment that got big laughs: Spelman president Helene Gayle asked "What does fun look like for the chair of the Federal Reserve?"
"For me, a big, big party, and I mean this is as fun as it gets: a really good inflation report," Powell said.
(Well, it's safe to assume, Powell has been having a lot of fun lately!)
