Federal Reserve Chair Jerome Powell said the central bank is not close to lowering interest rates, pointing to inflation that still sits above the Fed’s 2% goal. His comments reinforced expectations that policymakers will keep borrowing costs unchanged for now.

Speaking at a conference, Powell said the labor market remains solid, giving officials less urgency to ease monetary policy. He noted that while progress has been made on inflation, the Fed still needs more evidence that price pressures are moving sustainably lower.

The remarks suggest the central bank wants to avoid cutting too soon and risking renewed inflation. For households and businesses, that means credit conditions may stay tight a while longer, affecting everything from mortgages to business loans.

Markets are likely to continue watching upcoming inflation and employment data for clues on when the Fed could pivot. For now, Powell’s message was straightforward: rate cuts are not imminent.