Powell Presses The Pause Button

The FOMC left the federal funds rate (FFR) unchanged yesterday at 4.25%-4.50%, as widely expected. At his presser yesterday, Fed Chair Jerome Powell confirmed that the Fed might pause cutting rates for a while. He mentioned five times that the Fed is in no hurry to resume the cutting. He said eight times that the Fed needs to see further progress in lowering inflation. 

Powell acknowledged that the labor market has been stronger than the FOMC expected when the committee began lowering the FFR, by 50bps on September 18. He claimed that the Fed's policy is working to achieve its dual mandate of keeping the unemployment and inflation rates low.