Powell says September rate cut ‘on the table’ if inflation data continues to cool

Federal Reserve Chair Jerome Powell said Wednesday that the Federal Reserve could cut interest rates at its September meeting if economic data continues on its current path.

“If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September,” Powell said.

Recent economic data has pointed toward inflation data falling back toward the central bank’s 2% target, while the unemployment rates has crept up above 4%. The Fed said in its policy statement Wednesday that it is attentive to risks on “both sides of its dual mandate.”

Powell said central bankers would consider the “totality” of data in determining when to cut and would be “data dependent, but not data-point dependent.”