Fed Chair Powell Cautious on Interest Rate Cuts, Wants Further Evidence of Inflation Reduction

Benzinga 2024-07-03

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Fed Chair Jerome Powell expressed satisfaction with the progress in reducing inflation over the past year but said more evidence is needed before cutting interest rates. Powell said the Fed wants to see inflation "moving sustainably down toward 2%" before loosening monetary policy. Powell is wary of cutting rates too soon and risking inflation resuming its upward path. Markets expect two cuts in the fourth quarter of 2024. Powell didn't confirm or deny a possible September rate cut, saying he wouldn't land on specific dates.

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