Federal Reserve megaphone: Powell lowers interest rate cut expectations

"Federal Reserve mouthpiece" Nick Timiraos wrote that Federal Reserve Chairperson Powell said that strong inflation in Quarter 1 has brought new uncertainty to whether the Federal Reserve can lower interest rates this year without signs of an economic slowdown. His remarks indicate a clear shift in the Fed's outlook after the third consecutive month of stronger-than-expected inflation data, which appears to have dashed hopes that the Fed may preemptively cut interest rates. Powell also said that if inflation continues to rise above 2%, the Fed may maintain interest rates at their current highs for a longer period of time. The remarks suggest that if inflation is stronger than expected, further interest rate hikes are unlikely.