Powell: Fed doesn't need to ‘rush’ rate cuts

Federal Reserve Chairman Jerome Powell said that due to the strong U.S. economy, the Federal Reserve does not need to ‘rush’ to reduce interest rates, the Federal Reserve will ‘watch carefully’ to ensure that certain inflation indicators to remain within an acceptable range. Powell reiterated that the Fed's policy rate path will depend on the upcoming data and the evolution of the economic outlook. He said inflation is approaching the Fed's 2% target, but has not yet reached it.

The Fed will keep a close eye on core indicators of goods and services inflation, excluding housing, which have been declining over the past two years. ‘We expect these indicators to continue to fluctuate in the near-term range, and the road to the Fed's 2 per cent target will be bumpy at times.’