Fed Is ‘Not Far’ From Confidence Needed to Cut Rates, Powell Says

Federal Reserve Chair Jerome Powell indicated that the Fed is nearing the point of being confident enough to begin reducing interest rates. Speaking to the Senate Banking Committee, Powell highlighted that the central bank’s main condition for this shift is gaining assurance that inflation will stabilize around the 2% target. According to Powell, once the Fed attains this level of confidence, which he suggests is not far off, it will consider it appropriate to start easing the current restrictive monetary policy. This statement offers a glimpse into the Fed’s strategic outlook on managing inflation and interest rates, suggesting a potential upcoming shift in policy to stimulate economic growth.