Federal Reserve Chairman Jerome Powell did Friday what everyone expected, acknowledging in a speech in Jackson Hole, Wyoming, that the time to cut interest rates from their two-decade high is now.
“The time has come for policy to adjust,” Powell said. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
With Fed officials next scheduled to meet in September, the cuts – when they come and depending on how much and how many – should lead to lower rates on everything from mortgages to car loans and credit cards. Whether that will be enough to relieve the pressure on consumers and keep them spending remains to be seen.
This post originally appeared at U.S. News & World Report.