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US Federal Reserve chair Jerome Powell damped expectations of impending interest rate cuts on Tuesday — a sign that the Fed may have pumped so much money into the economy during the pandemic that the surplus is still making its way through the country.
Speaking on a panel discussion at the Wilson Center in Washington, Powell said while inflation pressure has eased in the last year, it hasn’t come down enough in recent months.
“The recent data have clearly not given us greater confidence and instead indicate that is likely to take longer than expected to achieve that confidence,” Powell said Tuesday
This means that the Fed isn’t confident at this point that inflation is headed to its 2% target level in the longer term.
Strong job growth is contributing to price gains. In particular, the Personal Consumption Expenditures Price Index — a key inflation metricfor the Fed — was little changed in March over its 2.8% …
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