Powell: Interest rate changes depend on "the totality of the data" and the timing is key.

On July 31 (UTC+8), when asked what the Federal Reserve needs to see in the data before making a decision to cut interest rates, Federal Reserve Chairman Powell said it would depend on the "totality of the evidence" between now and the next meeting in September. "We haven't made any decisions about September," Powell said. If the Fed believes the risks to its dual mandate are fully balanced, that would mean taking a more neutral stance, as restrictive policy supports the Fed's inflation target. It would be a waste of resources if the Fed adjusts interest rates before the inflation problem is resolved, and it would damage the labor market if the adjustment is made too late. He stressed that the key is to "get the timing right." [Jin10]