Today: May 30, 2024
Today: May 30, 2024

Fed's Powell suggests that elevated inflation will likely delay rate cuts this year

Share This
Fed's Powell suggests that elevated inflation will likely delay rate cuts this year
April 16, 2024
CHRISTOPHER RUGABER - AP

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell cautioned Tuesday that persistently elevated inflation will likely delay any Fed rate cuts until later this year because “recent data have clearly not given us greater confidence” that price increases are under control.

The most recent inflation reports “instead indicate that it’s likely to take longer than expected to achieve that confidence,” Powell said during a panel discussion at the Wilson Center. “If higher inflation does persist, we can maintain the current level of restriction for as long as needed.”

The Fed chair's comments suggested that without further evidence that inflation is falling, the central bank will likely carry out fewer than the three quarter-point reductions its officials had forecast during their most recent meeting in March.

Powell's comments followed a speech earlier Tuesday by Fed Vice Chair Philip Jefferson, who also appeared to raise the prospect that the Fed would would not carry out three cuts this year in its benchmark rate, which stands at a multi-decade high after 11 rate hikes beginning two years ago.

Popular

US Labor Department sues Hyundai, suppliers in Alabama over alleged child employment

The U.S. Department of Labor wants a federal judge to prevent Hyundai and two other Alabama companies from what the government contends is the illegal employment of children

US Labor Department sues Hyundai, suppliers in Alabama over alleged child employment

Hormel Foods quarterly sales miss estimates as retail business lags

Hormel Foods missed market expectations for second-quarter sales on Thursday as the Wholly dips maker grapples with weakness in its mainstay retail business, offsetting steady demand for

Hormel Foods quarterly sales miss estimates as retail business lags

Japan, at G7 meet, renews push to keep yen bears in check

Japan renewed its push to counter excessive yen falls during a weekend gathering of Group of Seven (G7) finance leaders, after a recent rise in bond yields to

Japan, at G7 meet, renews push to keep yen bears in check

Inflation watch

Inflation data from the U.S., the euro zone and Japan in the days ahead will guide investors' expectations over the scale and pace of interest rate changes to come in major economies.

Inflation watch

Russia to build Central Asia's first nuclear power plant in Uzbekistan

Russia will build a small nuclear power plant in Uzbekistan, the first such project in post-Soviet Central Asia, Uzbek President Shavkat Mirziyoyev said on Monday at a meeting with

Russia to build Central Asia's first nuclear power plant in Uzbekistan

Related

Texas daily power demand sets record for May consumption

Texas daily power demand sets record for May consumption

Germany should consider easing debt brake, says IMF

Germany should consider easing debt brake, says IMF

IRS makes free tax return program permanent and is asking all states to join in 2025

IRS makes free tax return program permanent and is asking all states to join in 2025

Mortgage rates snap three-week pullback, pushing average rate on a 30-year home loan back above 7%

Mortgage rates snap three-week pullback, pushing average rate on a 30-year home loan back above 7%
- Advertisement -
Advertisement: Limited Time Offer