Powell Says Rate Cuts Likely This Year But Still Needs 'Greater Confidence' Inflation Is Slowing
(RTTNews) - Federal Reserve Chair Jerome Powell will tell members of Congress on Wednesday that it will likely be appropriate for the central bank to begin lowering interest rates at "some point this year" but reiterated officials need "greater confidence" inflation is moving sustainably toward 2 percent.
In prepared remarks before the House Financial Services Committee, Powell described the economic outlook as "uncertain" and said progress towards the Fed's 2 percent inflation objective is "not assured."
"Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation and ultimately require even tighter policy to get inflation back to 2 percent," Powell said.
He added, "At the same time, reducing policy restraint too late or too little could unduly weaken economic activity and employment."
Powell said future interest rate decisions will be based on careful assessment of the incoming data, the evolving outlook, and the balance of risks.
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