Reported 7 months ago
Jerome Powell, the chairman of the Federal Reserve (Fed), stated in a post-decision press conference that while progress has been made in cooling off inflation in the United States, it still remains too high. Powell emphasized that Fed officials still lack confidence in a rate cut, but stressed that no one is considering a rate hike. Despite a larger-than-expected decrease in the May Consumer Price Index (CPI), Powell mentioned that the Fed remains not confident enough to initiate a rate cut, as inflation remains elevated. The Federal Open Market Committee (FOMC) members do not view a rate hike as a likely scenario, and the Fed need more evidence of inflation moving towards the 2% target before considering a rate cut, maintaining a restrictive monetary policy for now.
Source: YAHOO