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2024-04-09 17:43:21
The US Federal Reserve’s fight against inflation has not yet ended, said Jerome Powell, head of the US Central Bank, at Stanford University.
As Day.Az reports with reference to Interfax, the Financial Times writes about this.
“We don’t think it would be appropriate to cut the interest rate until we have greater confidence that inflation is coming down sustainably to 2%,” he said.
Powell said it was too early to tell whether the higher-than-forecast rate of consumer price growth in the past two months was more than a short-term blip.
“Given the strength of the economy and progress on inflation, we have time to let incoming data guide our monetary policy decisions,” he said.
Although recently released data on job growth and inflation were higher than expected, Powell said it did not change the overall picture of the economy from the Fed’s perspective.
He stressed that the economic outlook is “still very uncertain” and there are risks of rising inflation and a weakening labor market. “We will make decisions every meeting,” the Fed chief said.
Financial markets currently expect a 25 basis point rate cut following the Fed’s June meeting, although the likelihood of this is not much higher than 50%. Economists see a real risk that the Fed will delay rate cuts from June to the end of the year, MarketWatch notes.
The Federal Reserve has kept its base rate in the range of 5.25-5.5% per annum since July 2023.
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