MNI BRIEF: Fed's Powell - Need More Data For Confidence To Cut
Fed Chair says central bank can afford to be patient about taking the important step of starting rate reductions.
Federal Reserve Chair Jerome Powell said Wednesday policymakers need "a little bit” more data to gain confidence that inflation is coming down sustainably to 2%, which will allow the central bank to lower interest rates at some point this year.
“The committee would like to see more data that confirm and make us more confident that inflation is moving sustainably down to 2%,” Powell told the House Financial Services Committee.
“We have some confidence. We want to see a little bit more data so that we can become confident so we can take that step of beginning to reduce policy rates. Because of the strength in the economy and the strength in the labor market we can approach that step carefully and thoughtfully.” (See MNI INTERVIEW: Fed To Stay Patient Given Bumpy Inflation-Groen)