Powell Says Fed Can Wait on Rate Cuts as Inflation Stays Sticky

Federal Reserve Chair Jerome Powell said the central bank is in no rush to cut interest rates, pointing to inflation that remains above the Fed’s 2% target and a labor market that continues to show resilience. Speaking in a recent address, Powell said policymakers want to see more convincing evidence that price pressures are easing before considering any shift toward lower borrowing costs.

Powell’s remarks reinforced the Fed’s cautious stance after a series of economic reports suggested inflation has cooled only gradually. While some progress has been made, he said the latest data do not yet justify moving quickly to ease policy. The Fed has kept rates elevated to help bring inflation down, and officials have signaled they are prepared to hold them there until they are confident the disinflation trend is durable.

Markets reacted modestly to the comments. U.S. stock futures edged lower, reflecting reduced expectations for near-term rate cuts, while the dollar strengthened against major currencies as investors adjusted their outlook for U.S. monetary policy. Powell’s message underscored the Fed’s preference for patience, even as traders continue to watch for signs that inflation is returning sustainably toward target.