Inflation remains sticky, Powell hints at postponing rate cuts

On April 17, Federal Reserve Chairperson Jerome Powell said recent inflation data suggest it may take longer for the central bank to gain the confidence it needs to cut interest rates. Powell noted the lack of further progress on inflation after a rapid decline at the end of last year. If price pressures persist, he said, the Fed can keep interest rates steady for as long as needed. Given the strength of the labor market and the progress of inflation so far, he said, it would be appropriate to allow more time for restrictive policies to kick in and for data and the changing outlook to guide the Fed.