Powell reaffirms Fed 'not ready' to start cutting interest rates

Federal Reserve Chair Jerome Powell

Federal Reserve Chair Jerome Powell reiterated that he expects interest rates to start coming down this year, but is not ready yet to say when.

In prepared remarks for congressionally mandated appearances on Capitol Hill Wednesday and Thursday, Powell said policymakers remain attentive to the risks that inflation poses and don’t want to ease up too quickly.

“In considering any adjustments to the target range for the policy rate, we will carefully assess the incoming data, the evolving outlook, and the balance of risks,” he said.

Powell added that the committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.

The Feb raised rates over the last two years with the fastest pace in four decades to curb inflation that hit its highest levels in 40 years. However, it fixed rates since last July at a range between 5.25-5.5% amid slowing inflation.