Fed Chair Powell casts doubt on rate cuts

by Renata

Jerome Powell is casting doubt on future interest rate cuts as inflation refuses to come down.

The Fed chair said yesterday that the U.S. economy is strong, but inflation hasn’t come back down to the central bank’s goal. Consumer prices have risen slightly for the past three months while the core inflation rate holds steady at 2.8%.

That’s despite the Fed keeping interest rates at a two-decade high for nearly a year. The most recent data confirms it’s more than just a momentary blip, and Powell says that isn’t giving the Fed confidence to drop rates.

Traders are now expecting rate cuts by September.