- Federal Reserve Chairman Jerome Powell on Friday downplayed aggressive interest rate cuts, hailing their premature declarations as confounding, adding it’s too soon to speculate when policy might ease.
- Powell in his speech said that the current inflation levels are still “well above” the central bank’s goal, refuting any notion of a sufficiently restrictive stance achieved.
Federal Reserve Board Chairman Jerome Powell speaking at a news conference after a Federal Open Market Committee meeting on September 20, 2023, at the Federal Reserve in Washington, DC.
Chip Somodevilla | Getty Images
Federal Reserve Chairman Jerome Powell on Friday pushied back on market expectations for aggressive interest rate cuts ahead, calling it too early to declare victory over inflation.
Despite a string of positive indicators recently regarding prices, Powell insisted that the Federal Open Market Committee plans on “keeping policy restrictive” until policymakers are convinced that inflation is heading solidly back to 2%.
Markets showed little initial reaction to Powell’s remarks, with major averages mixed on Wall Street and Treasury yields lower.
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