Overview

• Federal Reserve Chair Jerome Powell indicates the Fed is not in a rush to cut interest rates, awaiting more consistent inflation reductions towards the 2% target.
• Recent U.S. inflation data shows a slight uptick but aligns with Fed expectations, suggesting a cautious approach to rate cuts.
• The economy remains robust with strong job growth and no imminent signs of recession, reinforcing the Fed's current monetary policy stance.
• Powell emphasizes the importance of being 'careful' about the decision to reduce rates, highlighting the balance between preventing inflation resurgence and avoiding economic harm.
• The Fed maintains its projection of three rate cuts by the end of 2024, contingent on further evidence of sustained inflation decline.