The Wall Street Journal writes, "Powell Dials Back Expectations on Rate Cuts." The article tells us, "Firm inflation during the first quarter has called into question whether the Federal Reserve will be able to lower interest rates this year without signs of an unexpected economic slowdown, Chair Jerome Powell said Tuesday. His remarks indicated a clear shift in the Fed'​s outlook following a third consecutive month of stronger-​than-​anticipated inflation readings, which derailed hopes that the central bank might be able to deliver pre-​emptive rate cuts this summer. Officials had previously said they were looking for greater confidence that inflation was returning to their target and were optimistic another month or two of data might meet that standard." They quote Powell during a Q&​A in Washington, "The recent data have clearly not given us greater confidence and instead indicate that it is likely to take longer than expected to achieve that confidence." The piece continues, "The remarks were his first public comments since an inflation report last week sent stocks sliding as investors recalibrated their rate-​cut expectations.... Powell indicated Tuesday the Fed wasn'​t considering rate increases, either. Instead, Powell said officials would leave rates at their current level '​as long as needed' if inflation proved more stubborn. He also said the Fed would be prepared to cut rates if the economy was slowing sharply. Officials raised rates last summer to a 23-​year high and have held them there since July." Powell adds, "We think policy is well positioned to handle the risks that we face.... Right now, given the strength of the labor market and progress on inflation so far, it'​s appropriate to allow restrictive policy further time to work."

Your Name:
Your Email:
Recipient Email(s):

Use a comma or a semicolon to separate

Please retype symbols from the image:

Optional Message

Daily Link Archive