Federal Reserve chair Jerome Powell reiterated to lawmakers that the US central bank is in no rush to cut interest rates until policymakers are convinced they have won their battle over inflation.
In prepared testimony to a House panel on Wednesday, the Fed chief said it will likely be appropriate to begin lower borrowing costs “at some point this year,” but made clear they’re not ready yet.
The remarks echoed a consistent message – the economy and labour market are strong, meaning policymakers have time to wait for more evidence that inflation is headed back to their goal before cutting interest rates.
“The committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%,” Powell said.
