Powell: Today's Decision Is Not a 'Pause,' Just the Start of Policy Adjustment

On July 30, Federal Reserve Chair Jerome Powell stated at a press conference that he would not describe the current interest rate decision as a 'pause.' If the market interprets it as such, that is the financial market's own judgment. 'Today's decision is the beginning of the story, not the end,' Powell said. He noted that the Fed is closely monitoring the impact of various shocks on underlying inflation and assessing whether its scope is expanding. What is being done now is a rigorous review of economic conditions. He emphasized that the U.S. labor market is performing well, and the Fed has 'done a pretty good job' in achieving maximum employment. The dual mandate does not conflict, and neither mission has been neglected. Regarding the upcoming Jackson Hole Economic Symposium, Powell said he has not yet started preparing his speech, but hopes to discuss major policy issues at the event and will further study related matters with the working group before the meeting.