The recent data have clearly not given us greater confidence and instead indicate that it’s likely to take longer than expected to achieve that confidence,” Powell said during an event sponsored by the Wilson Center.
US stocks wavered Tuesday after Federal Reserve Chair Jerome Powell said a “lack of further progress” on inflation means the central bank likely won’t cut interest rates at its upcoming policy meeting just two weeks away,
The dollar edged down but was near 5-1/2-month highs on Wednesday as Federal Reserve officials reiterated the rate-cutting cycle was on hold pending new economic data, while the pricing of the monetary easing outlook for G10 central banks was roughly unchanged.
Federal Reserve Chair Jerome Powell cautioned Tuesday that persistently elevated inflation will likely delay any Fed interest rate cuts until later this year, opening the door to a period of higher-for-longer rates.
Wall Street stocks ended little changed Tuesday as markets digested mixed economic data and Federal Reserve commentary suggesting interest rates would remain high for longer.
The dollar was broadly steady on Wednesday, keeping the yen rooted near 34-year lows after comments from Federal Reserve officials, including Chair Jerome Powell, suggested U.S. interest rates are likely to stay higher for longer.
The dollar was broadly steady on Wednesday, keeping the yen rooted near 34-year lows after comments from Federal Reserve officials, including Chair Jerome Powell, suggested U.S. interest rates are likely to stay higher for longer.
By Howard Schneider WASHINGTON (Reuters) -Federal Reserve Chair Jerome Powell said on Tuesday the U.S. central bank may need to keep interest rates higher for longer than previously thought, given what he called a "lack of further progress" this year towards the 2% inflation target.