Powell opening statement: It will likely be appropriate to cut at some point this year

<ul><li>The economy has made 'good progress' towards dual mandate</li><li>Payroll growth over past three months is averaging 165K, which is still healthy but well below a year ago</li><li>Inflation remains above longer run goal of 2%</li><li>Lower inflation in H22023 were welcome but we will need to see continuing evidence to get confidence that inflation moving to target</li><li>Longer-term inflation expectations appear well anchored</li><li>FOMC highly attentive to risks inflation poses to both sides of mandate</li><li>Our policy rate is likely at its peak</li><li>Reducing policy too soon or too late poses risks</li><li>We continue to make decision meeting-by-meeting</li><li><a href="https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20240131.pdf" target="_blank" rel="nofollow">Full text (pdf)</a></li></ul><p>Key line:</p><p>"We believe our policy rate is likely at its peak for this tightening cycle, and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year."</p>

This article was written by Adam Button at www.forexlive.com.