Powell says Fed will keep rates steady until inflation eases further

Federal Reserve Chair Jerome Powell said the central bank is not ready to lower interest rates and will keep policy unchanged until inflation shows more convincing progress toward its 2% goal. His remarks reinforce the Fed’s cautious stance after a stretch of aggressive tightening aimed at cooling price growth.

Powell said the inflation fight remains unfinished, signaling that officials want to see more durable evidence that price pressures are fading before easing monetary conditions. The message suggests the Fed is still prioritizing price stability over near-term relief for borrowers.

The comments are likely to keep pressure on markets that have been hoping for rate cuts later this year. For households and businesses, the Fed’s holding pattern means borrowing costs may stay elevated for longer, even as the broader economy continues to adjust to tighter financial conditions.