‘The time has come': The Fed just sent a crucial message about its next move

America’s top central banker has indicated that lower interest rates are on the horizon. In a speech at an annual gathering of central bankers and economists, the Fed Chair stated that ’the time has come for policy to adjust’ and that the Fed will support a strong labor market and progress toward price stability. The Fed’s aggressive rate-hiking campaign seems to be paying off, with inflation down substantially and the job market remaining strong. These comments have opened the door for the first interest rate cut since 2020.