Powell: The Fed will not cut interest rates until it has greater confidence in inflation

Fed Chair Powell said on Wednesday that the Fed is not expected to cut interest rates until it has greater confidence in thedecline of inflation.

In a prepared speech for an event, Powell said that policymakers need some time to assess the current inflation situation, which keeps the timing of a potential rate cut uncertain. The Fed is expected to have more confidence in inflation before it cuts interest rates.

Data released in the US last Friday showed that the inflation indicator that the Fed values - the Core Personal Consumption Expenditure Deflator (Core PCE), rose slightly faster to 2.5% year-on-year in February, in line with expectations; the key core index excluding food and energy rose by 2.8%.

Powell said that the recent employment growth and inflation data were both higher than expected. However, it is still too early to say that inflation is on the rise again. Recent data have not substantially changed the overall situation. Overall, it is still a steady growth. The labor market is strong but is re-balancing. The inflation rate is on the bumpy road to falling to the Fed's target of 2%, but the authorities have not yet completed the goal of "constantly reshaping 2% inflation".

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