Fed Chair Powell delays rate cuts to monitor inflation, plans for three cuts this year.

From ABC News: 2024-04-04 02:54:24

Fed Chair Jerome Powell stated that the central bank will wait to assess if inflation continues to rise before implementing interest rate cuts. Inflation has dropped from 9.1% but is still above the Fed’s 2% target. The Fed plans to make three interest rate cuts this year, with the next decision scheduled for May.

US job gains exceeded expectations with 275,000 jobs added in February. The S&P 500 hit a record high, and consumer sentiment remains positive. However, the housing market is cooling due to soaring mortgage rates. Powell mentioned that surveys indicate the public expects inflation to return to 2%, aligning with the Fed’s goal.



Read more at ABC News: Fed Chair Jerome Powell pumps brakes on rate cuts