Federal Reserve chairman: Elevated inflation likely to delay rate cuts this year

US Federal Reserve chairman Jerome Powell has cautioned that persistently elevated inflation is likely to delay any Fed interest rate cuts until later this year, opening the door to a period of higher-for-longer rates.

The Fed chairman’s comments suggested that without further evidence that inflation is falling, the central bank may carry out fewer than the three quarter-point reductions its officials had forecast during their most recent meeting in March. In the past several weeks, government data has shown that inflation remains stubbornly above the Fed’s 2% target and that the economy is still growing robustly.And a closely watched gauge of “core” prices, which exclude volatile food and energy, rose sharply for a third straight month.

Last month, Mr Jefferson had said that should inflation keep slowing, “it will likely be appropriate” for the Fed to cut rates “at some point this year” – language that Mr Powell has also used.Instead, Mr Powell said only that the Fed could reduce rates “should the labour market unexpectedly weaken”.

United Kingdom Latest News, United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Federal Reserve chairman: Elevated inflation likely to delay rate cuts this yearThe remarks represented a shift for Jerome Powell, who on March 7 had said the Fed was ‘not far ‘from gaining the confidence it needed to cut…
Source: Observer_Owl - 🏆 18. / 72 Read more »

Inflation Surpasses Expectations, Posing Dilemma for Federal ReserveThe latest data reveals higher-than-expected inflation for March, raising concerns about the Federal Reserve's decision on interest rates.
Source: TheEconomist - 🏆 6. / 92 Read more »

Why inflation is sticking aroundThe Federal Reserve left rates unchanged as the price of services remain high
Source: FT - 🏆 113. / 51 Read more »

Why America can’t escape inflation worriesThe Federal Reserve sticks to its plans, despite an uncertain situation
Source: TheEconomist - 🏆 6. / 92 Read more »

No elevated risk for stroke seen after COVID-19 bivalent vaccine receiptFor Medicare beneficiaries aged 65 years and older, there is no evidence of elevated stroke risk immediately after vaccination with either brand of the COVID-19 bivalent vaccine, according to a study published in the March 19 issue of the Journal of the American Medical Association.
Source: medical_xpress - 🏆 101. / 51 Read more »

Rosie Huntington-Whiteley just nailed the elevated jumpsuit trendRosie Huntington-Whiteley’s £3,885 Saint Laurent jumpsuit takes off-duty dressing to new heights...
Source: hellomag - 🏆 24. / 68 Read more »