Central Banks
Powell Signals Rate-Cut Delay After Run of Inflation Surprises
- Fed chair said appropriate to give policy further time to work
- Central bank can keep rates steady for ‘as long as needed’
Federal Reserve Chair Jerome Powell signaled policymakers will wait longer than previously anticipated to cut interest rates following a series of surprisingly high inflation readings.
Powell pointed to the lack of additional progress made on inflation after the rapid decline seen at the end of last year, noting it will likely take more time for officials to gain the necessary confidence that price growth is headed toward the Fed’s 2% goal before lower borrowing costs.