Federal Reserve Chair Jerome Powell said the central bank is likely to wait before cutting interest rates at its July meeting, citing inflation that is still running above the Fed’s 2% goal. His comments suggest policymakers remain cautious despite pressure for lower borrowing costs.

Powell’s remarks reflect the Fed’s effort to balance slowing inflation against the risk of easing policy too soon. While price growth has cooled from its peaks, it has not fallen enough to give officials confidence that inflation is firmly under control.

A delay in rate cuts would keep financial conditions tighter for longer, affecting households and businesses already dealing with high borrowing costs. The Fed has signaled that it wants more evidence of sustained progress before moving.

Investors are now watching upcoming inflation and labor market data for clues about the next policy shift. For now, Powell’s message is clear: the central bank is not ready to declare victory over inflation.