Federal Reserve Chair Jerome Powell testified before Congress, signaling that the central bank is considering interest rate cuts in response to cooler inflation. Powell expressed optimism about the inflation outlook, noting that recent data suggests progress towards the Fed’s 2% target. He emphasized the importance of continued good data to build confidence in the sustainability of inflation trends.
Powell’s testimony highlighted the Fed’s commitment to making monetary policy decisions meeting by meeting, taking into account the potential impact on inflation and the overall economy. While Democrats may push for rate cuts and Republicans may emphasize caution, Powell stressed the importance of the Fed’s independence in fulfilling its dual mandate of maximizing employment and maintaining stable prices. The upcoming release of the Consumer Price Index will provide further insight into inflation trends and potentially guide the Fed’s future decisions on interest rates.
