News10NBC on Nostr: Fed Chair Jerome Powell: US inflation is cooling again, though it isn't yet time to ...
Fed Chair Jerome Powell: US inflation is cooling again, though it isn't yet time to cut rates
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US inflation is cooling again, according to Federal Reserve Chair Jerome Powell. After persistently high inflation reports earlier this year, data for April and May suggest a return to a disinflationary path. However, Powell stated that more evidence is needed before the Fed would consider cutting interest rates. The Fed wants to see annual price growth slow further towards their 2% target before feeling confident about defeating high inflation. Powell also acknowledged the fine line the Fed is treading in deciding when to cut its benchmark interest rate, as cutting rates too soon could re-accelerate inflation, while waiting too long risks weakening the economy. The government reported that consumer prices were unchanged from April to May, with inflation dropping to 2.6% in May from 2.7% in April. Core inflation also barely rose from April to May, falling to 2.6% from 2.8% in April. Powell stated that the US economy and job market remain healthy, allowing the Fed to take its time in deciding when rate cuts are appropriate. Most economists predict the first rate cut will occur in September. Powell declined to provide a specific time frame for a rate cut, but investors are betting on a nearly 70% chance of a reduction at the Fed's September meeting.
#JeromePowell #FederalReserve #Inflation #InterestRates
https://www.whec.com/national-world/fed-chair-jerome-powell-us-inflation-is-cooling-again-though-it-isnt-yet-time-to-cut-rates/
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US inflation is cooling again, according to Federal Reserve Chair Jerome Powell. After persistently high inflation reports earlier this year, data for April and May suggest a return to a disinflationary path. However, Powell stated that more evidence is needed before the Fed would consider cutting interest rates. The Fed wants to see annual price growth slow further towards their 2% target before feeling confident about defeating high inflation. Powell also acknowledged the fine line the Fed is treading in deciding when to cut its benchmark interest rate, as cutting rates too soon could re-accelerate inflation, while waiting too long risks weakening the economy. The government reported that consumer prices were unchanged from April to May, with inflation dropping to 2.6% in May from 2.7% in April. Core inflation also barely rose from April to May, falling to 2.6% from 2.8% in April. Powell stated that the US economy and job market remain healthy, allowing the Fed to take its time in deciding when rate cuts are appropriate. Most economists predict the first rate cut will occur in September. Powell declined to provide a specific time frame for a rate cut, but investors are betting on a nearly 70% chance of a reduction at the Fed's September meeting.
#JeromePowell #FederalReserve #Inflation #InterestRates
https://www.whec.com/national-world/fed-chair-jerome-powell-us-inflation-is-cooling-again-though-it-isnt-yet-time-to-cut-rates/