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Jay Powell signals Federal Reserve will revert to quarter-point cut in November

US central bank chair expresses ‘growing confidence’ of soft landing for economy

Federal Reserve chair Jay Powell signalled that the US central bank would consider reverting to its more usual quarter-point cut in November if economic data remained robust, after delivering a larger-than-usual half-point reduction earlier this month.

Striking a positive note about the health of the world’s largest economy, Powell said on Monday that the Federal Open Market Committee was “not a committee that feels like it’s in a hurry to cut rates quickly”.

Rather, the goal of the FOMC was to move monetary policy “over time towards a more neutral stance” — a level that neither stimulates nor restrains economic activity.

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