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Powell, Freeze Interest Rates: If Inflation Doesn't Come Down, No Cuts

Powell, Freeze Interest Rates: If Inflation Doesn't Come Down, No Cuts

Chairman of the Federal Reserve Bank

Recent data shows no further progress on the inflation front. This was stated by Federal Reserve Chairman Jerome Powell, who also added: “If inflation remains high, interest rates will remain at current levels for as long as necessary.”

Recent data shows no further progress on the inflation front. This was stated by Federal Reserve Chairman Jerome Powell, who also added: “If inflation remains high, rates should be kept at their current levels for as long as necessary.”

Confidence in a sustained decline in inflation toward the 2% target “may take more time,” the Fed chief says, stressing that it is “appropriate” to give monetary policy more time to act. Powell mentioned that a long time ago The Fed will be willing to cut interest rates when it has more confidence that inflation will decline. His words seemed to indicate that the Fed will keep interest rates high for longer than expected in light of persistent inflation.

Jerome Powell, speaking at an economic forum, said flat inflation in the fourth quarter “has created new uncertainty about when and whether the Fed will have the ability to cut interest rates later in the year.”

last week The European Central Bank kept interest rates unchangedeven if the cutting date only has to be postponed to June.

Powell's comments followed a speech in recent days by Fed Vice Chairman Philip Jefferson: He also appeared to raise the possibility that the Fed would not make three interest rate cuts this year.

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