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

Federal Reserve Chair Jerome Powell said the central bank is in no hurry to cut interest rates, arguing that policymakers have time to wait for clearer evidence that inflation is moving sustainably toward the 2% target. In remarks that reinforced a cautious stance, Powell said the economy remains resilient and the labor market is still solid, reducing the need for immediate policy easing.

Powell’s comments come as investors have been hoping for signs that the Fed could begin lowering borrowing costs later this year. But the Fed chief emphasized that recent progress on inflation has not been enough to declare victory, noting that price pressures remain above target. He also suggested that strong financial markets do not change the central bank’s data-dependent approach.

Markets reacted modestly to the remarks. The S&P 500 fell 0.3%, while Treasury yields edged higher as traders reassessed the timing and pace of potential rate cuts. The message from Powell was clear: the Fed wants more confidence that inflation is under control before shifting toward easier policy.