U.S. Fed Rate Cut Positive For Economy

US Treasury Secretary Janet Yellen said that the Federal Reserve's interest rate cut of 50 basis points is "a very positive sign" for the American economy, according to a report from the Anadolu news agency.

Yellen noted that the Fed's significant rate cut "reflects confidence" from the central bank that inflation has decreased substantially and is on track to return to the bank's 2% target. I Photo: U.S. Embassy & Consulate in Brazil

She noted that the Fed's significant rate cut "reflects confidence" from the central bank that inflation has decreased substantially and is on track to return to the bank's 2% target. Inflation risks have "meaningfully diminished," Yellen said at the Atlantic Festival 2024 in Washington, D.C.

She added that wages are rising at a healthy pace, outpacing inflation, so workers are improving in real terms.

Fed Chair Jerome Powell stated during a post-meeting news conference on Wednesday that the labor market remains in "solid condition" and the US economy is in "good shape."

"The upside risks to inflation have diminished, and the downside risks to employment have increased as inflation has declined and the labor market has cooled," Powell remarked.