Fed Chair Powell Cautious on Rate Cuts Amid Inflation Trends

Jerome Powell indicates more evidence of inflation decline needed before considering interest rate reductions.

Federal Reserve Chair Jerome Powell indicates the Fed is not in a rush to cut interest rates, awaiting more consistent inflation reductions towards the 2% target.
Recent U.S. inflation data shows a slight uptick but aligns with Fed expectations, suggesting a cautious approach to rate cuts.
The economy remains robust with strong job growth and no imminent signs of recession, reinforcing the Fed's current monetary policy stance.
Powell emphasizes the importance of being 'careful' about the decision to reduce rates, highlighting the balance between preventing inflation resurgence and avoiding economic harm.
The Fed maintains its projection of three rate cuts by the end of 2024, contingent on further evidence of sustained inflation decline.