Federal Reserve Chair Jerome Powell said Tuesday that the U.S. economy, while otherwise strong, has not seen inflation come back to the central bank’s goal, pointing to the further unlikelihood that interest rate cuts are in the offing anytime soon.
Top U.S. central bank officials including Federal Reserve Chair Jerome Powell backed away on Tuesday from providing any guidance on when interest rates may be cut, saying instead that monetary policy needs to be restrictive for longer and further dashing investors' hopes for meaningful reductions in borrowing costs this year.
The recent data have clearly not given us greater confidence and instead indicate that it’s likely to take longer than expected to achieve that confidence,” Powell said during an event sponsored by the Wilson Center.
Federal Reserve Chair Jerome Powell cautioned Tuesday that persistently elevated inflation will likely delay any Fed rate cuts until later this year, opening the door to a period of higher-for-longer interest rates.
By Howard Schneider WASHINGTON (Reuters) -Federal Reserve Chair Jerome Powell said on Tuesday the U.S. central bank may need to keep interest rates higher for longer than previously thought, given what he called a "lack of further progress" this year towards the 2% inflation target.
Federal Reserve Chair Jerome Powell on Tuesday said that it is taking longer than previously expected for inflation to reach the central bank's 2% target.
Federal Reserve Chair Jerome Powell said firm inflation during the first quarter had introduced new uncertainty over when and whether the central bank would be able to lower interest rates later this year.
Interest rate futures tracking expectations for Federal Reserve policy moves fell on Tuesday after Federal Reserve Chair Jerome Powell said recent data on inflation have not given policymakers the greater confidence needed for them to pivot to interest rate cuts soon.
The Federal Reserve should not cut interest rates with an eye on financial stability concerns, the International Monetary Fund said Tuesday, in its latest update on financial market risks.
Federal Reserve Vice Chair Philip Jefferson, in remarks that skirted any mention of interest rate cuts, said the U.S. central bank was ready to keep its tight monetary policy in place if inflation fails to slow as expected.
Jefferson said he expects inflation will decline further, but he added that the “outlook is still quite uncertain.” His speech’s title: “Economic Uncertainty and the Evolu
Federal Reserve Chair Jerome Powell signaled that first-quarter inflation data has raised uncertainty over when and if lower interest rates would come later this year. Photo: Samuel Corum/Bloomberg Ne
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.
US Federal Reserve chair Jay Powell has said it is likely to take “longer than expected” for inflation to return to the central bank’s 2 per cent target and justify cuts to interest rates. “We’ve said at the FOMC [Federal Open Market Committee] that we’ll need greater confidence that inflation is moving sustainably toward 2 per cent before it would be appropriate to ease policy,
US stocks wavered Tuesday after Federal Reserve Chair Jerome Powell said a “lack of further progress” on inflation means the central bank likely won’t cut interest rates at its upcoming policy meeting just two weeks away,
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.
Federal Reserve Vice Chair Philip Jefferson, in remarks devoid of any mention of interest rate cuts, said on Tuesday "it will be appropriate to hold in place the current restrictive stance of policy for longer" if inflation fails to slow as expected.
The US economy’s enduring strength and a “lack of progress” on inflation means the central bank likely won’t cut interest rates at its upcoming policy meeting just two weeks away, Federal Reserve Chair Jerome Powell said Tuesday.
Federal Reserve Vice Chair Philip Jefferson said he expects inflation will continue to moderate with interest rates at their current level but persistent price pressures would warrant holding borrowing costs high for longer.
A senior Federal Reserve official said the central bank was prepared to wait longer to cut interest rates if inflation proved more difficult to subdue. Fed Vice Chair Philip Jefferson said in a speech
Federal Reserve Chairman Jerome Powell indicated recent high inflation is making it less likely that interest rates will be cut in the coming weeks and months. Powell, speaking during a question-and-answer session in Washington,
Federal Reserve chair Jerome Powell has said there’s been an unexpected “lack of further progress” on tackling the record-high inflation rates that hit the US in recent years, putting the brakes on expected rate cuts from the central bank.
Stocks close mixed; Powell says it’ll take longer than expected to be confident that inflation is moving down; housing starts fall; industrial production rises.
The US Federal Reserve's ongoing fight against inflation could take "longer than expected," the head of the US central bank said Tuesday, further paring back the chances of early rate cuts.
Why it matters The Fed may keep rates at the current, two-decades high level for longer as it assesses incoming economic data, Powell said in his first public remarks since last week's hotter-than-expected inflation report.
Federal Reserve Chair Jerome Powell spoked Wednesday to the Wilson Center’s Washington Forum on the Canadian Economy. This is breaking news. Please check back here for updates.
U.S. stocks on Tuesday remained rangebound in volatile trade, eventually ending mixed. The uncertain session came after Federal Reserve chair Jerome Powell noted that recent data showed a lack of further progress on inflation.
Federal Reserve Chair Jerome Powell said Tuesday that it will likely “take longer than expected” for the central bank to gain the confidence that inflation is sustainably falling to 2 percent and begin cutting interest rates.
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 labor market remains very strong" as the unemployment rate remains under 4% for the longest period in more than half a century, Federal Reserve Chair Jerome Powell said on Tuesday. Even with this strength the labor market has been moving into better balance,
U.S. Treasury yields rose Tuesday after Federal Reserve Chair Jerome Powell said inflation has yet to ease back to the central bank's target. The 2-year Treasury yield briefly topped the 5% level, but was last trading at 4.
Federal Reserve Chair Jerome Powell cautioned Tuesday that persistently elevated inflation will likely delay any Fed interest rate cuts until later this year, opening the door to a period of higher-for-longer rates.
This year's rally in the U.S. dollar (DXY) is gaining momentum as financial markets increasingly price in higher-for-longer U.S. interest rates in the wake of stubborn inflation and resilient economic growth.
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Wall Street stocks ended little changed Tuesday as markets digested mixed economic data and Federal Reserve commentary suggesting interest rates would remain high for longer.
Federal Reserve Governor Philip Jefferson said on Tuesday that his baseline outlook continues to expect that inflation will decline further from the core PCE rate of 2.8% in February, which has receded from 4.