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Xinhua News Agency, Washington, August 23 (Reporter Xiong Maoling) U.S. Federal Reserve Chairman Powell said on the 23rd that the "time has come" to adjust monetary policy. International observers believe that the decline in U.S. inflation pressure and the weak job market are the main reasons why the Federal Reserve is ready to adjust its monetary policy. However, even if the Federal Reserve begins to cut interest rates, the high borrowing costs caused by high interest rates will continue for some time, continuing to drag down the development of the U.S. economy. At the same time, the Fed's subsequent monetary policy direction also brings great uncertainty to global financial markets and economic development.

This is the Federal Reserve building photographed in Washington, the United States on January 27, 2021. (Photo by Xinhua News Agency reporter Liu Jie)

Powell said at the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming, that the timing and pace of interest rate cuts will depend on the latest data, changes in the economic outlook and the balance of risks. Powell, who has always been cautious in his speech, rarely conveys such a straightforward message to the market.

To combat inflation, the Fed raised interest rates 11 times from March 2022 to July 2023, with a cumulative increase of 525 basis points. Over the past year, the Fed has maintained the target range for the federal funds rate between 5.25% and 5.5%, the highest level in 23 years.