Powell: Tariffs Mostly Paid By Middlemen Firms; Notes They Intend To Pass On Higher Costs But Haven’t Yet

Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen. In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4‑1/4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective. FOMC STATEMENT COMPARE: pic.twitter.com/6gTcajtaKz One dissenter: Voting against this action was Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting. FED SAYS DOWNSIDE RISKS TO EMPLOYMENT HAVE RISEN

Fed’s Powell Says No Broad Support For 50 Bps Cut; No Need To Move Quickly On Rates, Waiting Was The Right Call Fed's Powell: Risk of higher inflation are less than they were in April. Fed Chair Powell: Could Think Of Today's Cut As A Risk Management Cut Fed's Powell: Not all of what is happening in the labor market is due to immigration. There's a clear slowing in demand. Fed Chair Powell: Our Job Is To Make Sure It Is A One-Time Rise In Inflation, And We Will Do That Job - Case For There Being A Persistent Inflation Outbreak Are Less

POWELL: EXPECT TARIFF-DRIVEN PRICE INCREASES TO CONTINUE THIS YEAR AND NEXT Fed's Powell: It's possible tariffs are a reason for some slowing in labor market. Fed's Powell: Increase in goods prices accounts for most of inflation increase this year. *POWELL: REVISED JOBS NUMBERS MEAN LABOR MARKET NO LONGER SOLID Fed's Powell: Change in balance of risks suggests need to move in direction of neutral.