Oddbean

Powell says US Fed needs more evidence of falling inflation before cutting rates ========== Federal Reserve chair Jerome Powell stated that the US central bank requires more data before cutting interest rates, in order to ensure that recent weaker inflation readings accurately reflect underlying price pressures. The Fed's preferred measure of inflation did not increase in May, and the 12-month rate of price increases has decreased to 2.6%, still above the central bank's 2% target. Powell emphasized the need for confidence in the levels of inflation and noted that the US economy's strength allows for a cautious approach. However, he acknowledged that the risks to the Fed's inflation and employment goals have come closer to balance. The timing of an initial rate cut will depend on upcoming employment and inflation reports, with investors anticipating a quarter-percentage-point rate reduction at the Fed's September meeting. #FederalReserve #InterestRates #Inflation https://theedgemalaysia.com/node/717642