Powell says strong consumer spending keeps Fed rate path open

Federal Reserve Chair Jerome Powell said the central bank is still weighing its next move on interest rates as new economic data comes in, pointing to continued strength in consumer spending.

Powell’s remarks suggest the Fed is not committing to a specific path yet, with officials still focused on whether inflation is cooling enough to support future cuts or whether price pressures remain too persistent.

The resilience in household spending has helped keep the U.S. economy on firmer ground, but it also complicates the Fed’s task. Strong demand can keep inflation elevated, giving policymakers reason to stay cautious.

Investors are now watching upcoming inflation readings and other economic reports for clues about when the Fed could shift course. For now, Powell’s message was clear: decisions will depend on the data, not a preset timeline.