Fed’s Powell walking tightrope on rate cuts as inflation bites

Very few expect the Federal Reserve to cut interest rates Wednesday. Instead, investors will parse Chairman Jerome Powell’s Fed speak to determine if they’ve got expectations right for the first rate cut, or, if years of stubborn inflation will push potential cuts out even further.

In February, consumer prices on an annual basis rose 3.2% above economists' projections, with prices for items like rent, beef and juice even higher at 5.8%, 9.2% and 27%, respectively. A separate report on producer prices rose 1.6% annually, also more than expected last month. While consumer inflation is down from its peak of 9.1%, it remains above the Fed's 2% mandate.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Powell may provide hints of whether Federal Reserve is edging close to rate cutsWASHINGTON (AP) — Two weeks ago, Chair Jerome Powell suggested that the Federal Reserve was “not far” from gaining the confidence it needed that inflation was headed sustainably toward its 2% target level, which would allow it to start cutting its benchmark interest rate.
Source: AP - 🏆 728. / 51 Read more »