Jerome Powell calls the Fed’s rate reduction a ‘risk management cut

Monetary Policy Stance - The committee views the rate cut as a risk management strategy against potential labor market weakening [1] - The committee acknowledges the need to restore 2% inflation on a sustained basis [6] - Since April, the risks of higher and more persistent inflation have decreased [6] Labor Market Assessment - The labor market is showing signs of cooling off, influencing policy decisions [4] - Previously, the labor market saw 150,000 jobs created per month, but revisions and new numbers suggest a change [3] - Unemployment remains relatively low, but downside risks are emerging [7] Economic Outlook - GDP growth has slowed [7] - The median participant expects inflation to be higher than previously expected by the end of next year, with the Fed not reaching the 2% target until 2028 [4] - Projections for growth this year and next have slightly increased, while inflation and unemployment forecasts remained relatively stable [2]