Powell says Fed won't rush to cut interest rates until inflation is conquered
Fed's Powell doubles down on 'no rush to cut' message in congressional testimony
By Megan Henney FOXBusiness
Federal Reserve Chair Jerome Powell said Wednesday that policymakers expect to cut interest rates sometime in 2024, but are not ready to do so until they are confident inflation is tamed.
"We believe that our policy rate is likely at its peak for this tightening cycle," Powell said in remarks prepared for testimony before the House Financial Services Committee. "If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year."
The Federal Open Market Committee voted during their January meeting to hold rates steady at a range of 5.25% to 5.5%, the highest level in 22 years. Although policymakers also cracked open the door to reducing rates this year, Powell told reporters during the post-meeting press conference that a March cut was unlikely.
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