Fed Chair Powell Stresses Caution on Interest Rate Cuts, Stresses Need for Confidence in Inflation Trend Before Rate Cuts

Benzinga 2024-03-06

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Fed Chair Jerome Powell reiterated the Fed's position that policymakers are not yet ready to cut interest rates in prepared congressional testimony on Wednesday. Powell said the Fed will carefully assess incoming data and the evolving economic outlook before adjusting rates. He noted the Fed expects it will be appropriate to start reducing rates once there is greater confidence that inflation is sustainably moving toward the 2% target. Powell's comments indicate the Fed remains concerned about losing progress on inflation and will rely on data, not a preset course, for rate decisions.

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