Fed Chair Powell Signals Caution on Rate Cuts Amid Persistent Inflation

Jerome Powell indicates that the Federal Reserve is unlikely to reduce interest rates soon due to high inflation rates, despite previous expectations for cuts.

The Federal Reserve concludes its policy meeting with a cautious stance on interest rate reductions, influenced by higher than expected inflation rates.
Recent economic data has led to a reassessment of the likelihood of rate cuts, with most analysts now expecting fewer reductions this year.
Jerome Powell has hinted that the Fed's benchmark rate, currently at a 23-year high, will remain unchanged unless inflation significantly decreases.
Economic indicators such as strong consumer spending and low unemployment suggest the economy is performing better than anticipated, complicating the Fed's decisions.
The Fed may also slow the pace of reducing its balance sheet, a move that could impact long-term interest rates.