Powell’s Recalibration Buzzword Marks New Fed Policy Direction as Fed Makes 50 Basis Point Rate Cut to Adjust Policy

Federal Reserve Chair Jerome Powell introduced “recalibration” during his news conference following Wednesday's open market committee meeting. Powell explained that the unusual half-percentage point rate cut aimed to adjust policy to maintain economic and labor market strength without signaling an economic slowdown. Economists note that the Fed’s shift represents a broader effort to ensure the labor market doesn’t weaken further and expect more adjustments in upcoming meetings.