03:09 PM EDT, 09/18/2024 (MT Newswires) -- With the Federal Open Market Committee now focused on both employment and inflation, future policy moves will depend on how the date evolve, Federal Reserve Chairman Jerome Powell said Wednesday in a press conference after the FOMC meeting, where officials voted 11-1 to lower the target range for the federal funds rate by 50 basis points to 4.75% to 5%.

Powell said that the economy continues to expand at a solid rate and acknowledged the FOMC has gained more confidence that inflation has eased "notably."

Powell said that the FOMC does not believe it is behind the curve in lowering rates, adding that "we think this is timely, but I think you can take this as a sign of our commitment not to get behind."

Updates to the Summary of Economic Projections showed another 25 basis points to 50 basis points of reduction is possible in the remaining two meetings this year, with 100 basis points of cuts in 2025 and 50 basis points in 2026.

Powell said that the FOMC will make decisions meeting-by-meeting and repeated that the SEP is not a road map for future moves or a preset course, noting that the FOMC can move faster or slower based on the conditions.

"We know that reducing policy restraint too quickly could hinder progress on inflation," Powell said. "At the same time, reducing restraint too slowly could unduly weaken economic employment. And considering additional adjustments to the target for the federal funds rate, the committee will carefully assess the incoming data, evolving outlook and the balance of risks."

The updated projections showed downward adjustments to end-of-2024 GDP and inflation growth and an upward adjustment to the unemployment rate, with further slowing in inflation seen in 2025. The projections do not show inflation falling to 2% until 2026, corresponding with a small downtick in the unemployment rate.

"The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals," the FOMC said in its statement. "The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments."