MNI BRIEF: Powell: Know Risk Of Waiting Too Long To Cut Rates

Federal Reserve officials will try to avoid waiting so long to cut interest rates that they cause unnecessary employment losses, Fed Chair Jerome Powell said in testimony Thursday.

“We’re well aware of that risk, and very conscious of avoiding it," Powell told lawmakers when asked about the risk of waiting too long to cut interest rates and causing undue job losses.

“What we’re seeing is continued strong growth and strong labor market, and progress in bringing inflation down. If that happens, if the economy follows that path then we do think the process of carefully removing the restrictive stance of policy can and will begin over the course of this year.” (See MNI INTERVIEW: Fed Could Cut Less Than 3 Times In '24-Friedman)