Chair Jerome Powell defends central banks decision to go big with first cut NECN [Video]

The Federal Reserve surprised Wall Street with a half-point rate cut on Wednesday, bringing its target range to 4.75% to 5.00%. The decision was not unanimous, as Fed Governor Michelle Bowman called for a quarter-point cut instead. At his press conference, Chair Jerome Powell called the rate reduction a “recalibration” of central bank policy, noting that the Fed will continue to make decisions meeting by meeting.

Federal Reserve Chair Jerome Powell does not see the risk of an economic downturn being “elevated” following the super-sized cut.

“I don’t see anything in the economy right now that suggests that the likelihood of a recession, sorry, of a downturn, is elevated,” he said.

“I don’t see that,” he continued. “You see growth at a solid rate. You see inflation coming down. You see a labor market that’s still at very solid levels. So, I don’t really see that now.”

— Sean Conlon

Federal Reserve Chair Jerome Powell …