February 12, 2025 16:18 GMT
MNI BRIEF: Fed's Powell Wants To Keep Policy Restrictive
MNI (WASHINGTON) - Federal Reserve Chair Jerome Powell said Wednesday interest rate policy should stay restrictive for now because inflation is still too high despite significant strides over the past year.
"We’re close but not there yet on inflation. You did see today’s inflation print which says the same thing – we’ve made great progress but we’re not quite there yet," Powell told lawmakers in a hearing. "We want to keep policy restrictive for now."
The January CPI report came in stronger-than-expected, with consumer prices spiking 0.5% on a monthly basis, reinforcing the idea that Fed officials are likely to keep policy on hold for the foreseeable future. (See: MNI INTERVIEW: Fed Likely On Hold For Most Of 2025)
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