U.S. economic activity expanded slightly from late February through early April and there were fears among firms that progress in lowering inflation would stall, a Federal Reserve survey showed on Wednesday,
US Federal Reserve chair Jerome Powell damped expectations of impending interest rate cuts on Tuesday — a sign that the Fed may have pumped so much money into the economy during the pandemic that the surplus is still making its way through the country.
Investors largely took Federal Reserve Chair Jerome Powell’s comments on the outlook for interest rates in stride on Tuesday — a development that might have come as a surprise to some market watchers.
The dollar eased from 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 monetary easing outlook for major central banks was roughly unchanged.
Federal Reserve Chair Jerome Powell said firm inflation had introduced new uncertainty over whether the central bank would be able to lower rates this year.
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.
Federal Reserve Chair Jerome Powell said Tuesday that the U.S. economy, while otherwise strong, has not seen inflation come back to the central bank’s goal, pointing to the further unlikelihood that interest rate cuts are in the offing anytime soon.
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.
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.
Federal Reserve Chair Jerome Powell on Tuesday said that it is taking longer than previously expected for inflation to reach the central bank's 2% target.
Top U.S. central bank officials including Federal Reserve Chair Jerome Powell backed away on Tuesday from providing any guidance on when interest rates may be cut, saying instead that monetary policy needs to be restrictive for longer and further dashing investors' hopes for meaningful reductions in borrowing costs this year.
Federal Reserve Chair Jerome Powell signaled that first-quarter inflation data has raised uncertainty over when and if lower interest rates would come later this year. Photo: Samuel Corum/Bloomberg Ne
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.
Federal Reserve Chair Jerome Powell cautioned Tuesday that persistently elevated inflation will likely delay any Fed rate cuts until later this year because “recent data have clearly not given us greater confidence” that price increases are under control.
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,
Interest rate futures tracking expectations for Federal Reserve policy moves fell on Tuesday after Federal Reserve Chair Jerome Powell said recent data on inflation have not given policymakers the greater confidence needed for them to pivot to interest rate cuts soon.
Federal Reserve Chair Jerome Powell signaled policymakers will wait longer than previously anticipated to cut interest rates following a series of surprisingly high inflation readings.
The US economy’s enduring strength and a “lack of progress” on inflation means the central bank likely won’t cut interest rates at its upcoming policy meeting just two weeks away, Federal Reserve Chair Jerome Powell said Tuesday.
Federal Reserve Vice Chair Philip Jefferson, in remarks that skirted any mention of interest rate cuts, said the U.S. central bank was ready to keep its tight monetary policy in place if inflation fails to slow as expected.
Long-term Treasury yields finished at new five-month highs on Tuesday, after Federal Reserve Chair Jerome Powell indicated that policy makers will likely need to delay any interest-rate cuts and the International Monetary Fund projected faster economic growth for the U.
Federal Reserve Chairman Jerome Powell indicated recent high inflation is making it less likely that interest rates will be cut in the coming weeks and months. Powell, speaking during a question-and-answer session in Washington,
Federal Reserve Vice Chair Philip Jefferson, in remarks devoid of any mention of interest rate cuts, said on Tuesday "it will be appropriate to hold in place the current restrictive stance of policy for longer" if inflation fails to slow as expected.
Jerome Powell’s comments that firm inflation questioned whether rates will be cut without an unexpected economic slowdown are likely to lift the dollar in the near term, MUFG said.
Federal Reserve chair Jerome Powell has said there’s been an unexpected “lack of further progress” on tackling the record-high inflation rates that hit the US in recent years, putting the brakes on expected rate cuts from the central bank.
Why it matters The Fed may keep rates at the current, two-decades high level for longer as it assesses incoming economic data, Powell said in his first public remarks since last week's hotter-than-expected inflation report.
Federal Reserve Chair Jerome Powell said Tuesday that it will likely “take longer than expected” for the central bank to gain the confidence that inflation is sustainably falling to 2 percent and begin cutting interest rates.
Federal Reserve Chair Jerome Powell cautioned Tuesday that persistently elevated inflation will likely delay any Fed rate cuts until later this year because “recent data have clearly not given us greater confidence” that price increases are under control.
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.
Hong Kong stocks opened slightly lower on Wednesday after US Federal Reserve boss Jerome Powell warned the fight against inflation might take more time than expected, fuelling worries interest rates could stay higher for longer.
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 odds of a June rate cut were fading further on Tuesday after Federal Reserve Chair Jerome Powell cited a lack of progress on bringing down inflation. Fed-funds futures give just 15.2% chance of a rate cut through the Federal Open Market Committee’s June meeting,