Fed Chair Powell says there has been a ‘lack of further progress’ this year on inflation
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Federal Reserve Chair Jerome Powell stated that the US economy has not seen inflation return to the central bank's goal of 2%. Powell mentioned that recent data shows solid growth and strength in the labor market, but there has been a lack of further progress on inflation this year. He indicated that the current level of policy is likely to remain in place until inflation gets closer to the target. The Fed has kept its benchmark interest rate between 5.25% and 5.5% since July 2023. Powell added that until inflation shows more progress, the current level of restriction can be maintained. Inflation data for the first three months of 2024 has been higher than expected, with the consumer price index showing inflation running at a 3.5% annual rate in March. Treasury yields rose as Powell spoke, and financial markets have had to reset their expectations for rate cuts this year.

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https://www.cnbcafrica.com/2024/fed-chair-powell-says-there-has-been-a-lack-of-further-progress-this-year-on-inflation/