Overview

• US Fed Chair Jerome Powell signals a potential delay in expected interest rate cuts, citing the need for more confidence in reducing inflation to the target level.
• Recent data shows inflation remains above the Fed's 2% target, with strong job growth contributing to price stability rather than decline.
• Analysts suggest that the excess money from pandemic-era policies may still be impacting the economy, complicating efforts to reduce inflation.
• Global markets react to the prospect of 'higher for longer' interest rates, with significant implications for borrowing costs and economic growth.
• The UK also reports a slower decrease in inflation rates, with the Bank of England facing similar challenges in balancing economic growth and inflation control.