Fed Chair Powell: Risks between two goals have moved meaningfully toward greater equality

Economic Policy Insights - The current economic conditions suggest that a restrictive policy setting may no longer be warranted, although the policy has remained at a restrictive level throughout the year [1] - The labor market has shown solid conditions with strong job creation, but recent revisions indicate a decline in job creation numbers from April to August, shifting the risks towards inflation [2] - The balance of risks between inflation and economic growth is moving towards equality, indicating a potential shift towards a neutral policy stance [3] Interest Rate Decisions - There was no widespread support for a 50 basis point rate cut, reflecting a consensus that the current policy is appropriate given the economic context [4] - The company believes that the policy has been effective this year, with a cautious approach to changes based on evolving tariffs, inflation, and labor market conditions [5] - The recent evidence of softening in the labor market suggests that while risks are not fully balanced, they are moving towards balance, justifying a change in policy direction [5]