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MNI: Fed's Powell Urges Patience, Says Inflation To Move Down

(MNI) WASHINGTON

Confidence over inflation path has fallen after firm first quarter data, Federal Reserve chair says.

Federal Reserve Chair Jerome Powell on Tuesday called for patience in allowing higher interest rates to do their work to slow the economy and bring inflation back to 2% but said his confidence in the path of disinflation has fallen.

The first quarter of inflation data "was notable for its lack of further progress on inflation," Powell said. "We did not expect this to be a smooth road, but these were higher than I think anybody expected."

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Federal Reserve Chair Jerome Powell on Tuesday called for patience in allowing higher interest rates to do their work to slow the economy and bring inflation back to 2% but said his confidence in the path of disinflation has fallen.

The first quarter of inflation data "was notable for its lack of further progress on inflation," Powell said. "We did not expect this to be a smooth road, but these were higher than I think anybody expected."

Keep reading...Show less