AssetID: 53543972
Headline: UNCAPTIONED: Powell Says Fed Remains Reluctant to Start Lowering Interest Rates
Caption: Powell Says Fed Remains Reluctant to Start Lowering Interest Rates. On March 6, Federal Reserve Chair Jerome Powell said that interest rates will start to drop at some point this year, without specifying when. CNBC reports that Powell said policymakers are closely monitoring the risks of inflation and are reluctant to begin easing rates too quickly. "In considering any adjustments to the target range for the policy rate, we will carefully assess the incoming data, the evolving outlook, and the balance of risks." "The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent." According to Powell, the Fed needs "a little bit more data" before making a decision on rates. "We think because of the strength in the economy and the strength in the labor market and the progress we’ve made, we can approach that step carefully and thoughtfully and with greater confidence." "When we reach that confidence, the expectation is we will do so sometime this year. We can then begin dialing back that restriction on our policy." Markets are eagerly anticipating the Fed ending its aggressive rate-hiking campaign, after 11 interest rate increases between March 2022 and July 2023. "Longer-term inflation expectations appear to have remained well anchored, as reflected by a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets." Jerome Powell, Federal Reserve Chair, via CNBC. CNBC reports that Powell is scheduled for a two-day visit to Capitol Hill this week, beginning with a March 6 meeting with the House Financial Services Committee. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: United States,Remains,Jerome Powell,Federal,Interest rates,Politician,Policy rate,Balance,Risk,Outlook,Reduce,Confidence,Inflaton,Committee
PersonInImage: