“We didn’t gain any additional confidence in the first quarter but the three readings in the second quarter, including the one from last week, do add somewhat to confidence,” Powell said Monday during an interview with David Rubenstein at the Economic Club of Washington DC.
Federal Reserve Chair Jerome Powell said second-quarter economic data has provided policymakers greater confidence that inflation is heading down to the central bank’s 2% goal, possibly paving the way for near-term interest-rate cuts.
Powell highlighted the three latest inflation readings, though he made clear he didn’t intend to send any specific message about the timing of rate reductions. He also cemented a shift in tone toward emphasizing potential risks to the labour market, alongside the Fed’s continued focus on taming prices.
