Fed needs 'more good data' to feel comfortable about rate cuts: Powell

Powell needs to see more "good data" showing sustained progress in cooling inflation, with the central bank aiming for a 2% target. He mentioned that lowering rates too quickly could reverse the progress on bringing inflation down, while keeping rates elevated for too long could weaken the economy and the job market.

Recent inflation readings have shown modest progress, encouraging Federal Reserve Chair Jerome Powell to inch closer to feeling comfortable about interest rate cuts6. However, Powell emphasizes that more "good data" is needed to strengthen confidence that inflation is moving sustainably toward the 2% target.