Federal Reserve Chair Jerome Powell said the central bank is not preparing to cut interest rates soon, pointing to inflation that remains too persistent for policymakers to declare victory. He said the Fed will continue to rely on incoming data before making any move on borrowing costs.

Powell’s comments suggest the central bank is still more concerned about price pressures than about easing too quickly. While labor market data has shown signs of cooling, officials are not seeing enough progress on inflation to justify an immediate shift in policy.

The message from the Fed was clear: rates are likely to stay elevated for longer. That stance reflects a cautious approach meant to prevent inflation from flaring up again, even if it keeps pressure on consumers and businesses facing higher financing costs.

Markets are now left to gauge how long the Fed will hold firm. Any future rate cuts will depend on whether inflation continues to move lower in a sustained way and whether broader economic data support a change in direction.