Jerome Powell's Response to House Financial Services Committee Testimony
Powell reiterated the Federal Reserve's view that the benchmark interest rate may be cut later this year due to declining inflation.
Powell reiterated the Federal Reserve's view that the benchmark interest rate may be cut later this year due to declining inflation.
He stated that the Fed is considering when to cut its influential fed funds rate, but not certain that price increases won't reaccelerate.
He stated that the Fed is considering when to cut its influential fed funds rate, but not certain that price increases won't reaccelerate.
Powell warned that reducing policy restraint too soon or too much could lead to a reversal of progress in inflation and require tighter policy to get inflation back to 2%.
Powell warned that reducing policy restraint too soon or too much could lead to a reversal of progress in inflation and require tighter policy to get inflation back to 2%.
Despite Powell's caution, equities rallied after a slump the day before, with investors pricing in a nearly 90% chance of at least one rate cut by July.
Despite Powell's caution, equities rallied after a slump the day before, with investors pricing in a nearly 90% chance of at least one rate cut by July.
Representative Patrick McHenry, Republican of North Carolina, asked for more concrete data on what data the Fed needs to cut rates.
Representative Patrick McHenry, Republican of North Carolina, asked for more concrete data on what data the Fed needs to cut rates.
Powell remained cautious in sending new signals on the direction of monetary policy.
Powell remained cautious in sending new signals on the direction of monetary policy.