Fed's Powell: Prices are ‘back on disinflationary path,’ but more confidence is needed
What did Jerome Powell say about inflation's current path?
Federal Reserve Chair Jerome Powell said that recent inflation data suggests the US is getting back on a disinflationary path. However, he emphasized the need for more evidence before the central bank would consider cutting interest rates. Powell noted that inflation remains elevated, and the Fed wants to see annual price growth slow further toward their 2% target before feeling confident about defeating high inflation.
Where did Jerome Powell speak about inflation and interest rates?
Federal Reserve Chair Jerome Powell discussed inflation and interest rates at a central bank forum in Sintra, Portugal. He mentioned that recent inflation reports from April and May suggest that price pressures are easing, and while progress has been made, more evidence is needed before reducing interest rates.
What is the current range of interest rates set by the Fed?
The current range of interest rates set by the Fed is 5.25% to 5.50%. This was decided at their most recent meeting in May, where they chose to maintain this range to align with their target inflation rate and goal of reaching maximum employment.