US Inflation Eases, But Rate Cuts Premature Warns Fed Chair Powell
Inflation in the United States is showing signs of slowing down, according to Federal Reserve Chair Jerome Powell. This development follows higher inflation readings earlier in the year. Powell highlighted that while the recent data for April and May suggests a return to a disinflationary path, it is still premature to cut interest rates.
Powell emphasized the necessity for more evidence before the Federal Reserve considers adjusting interest rates. He noted that Fed officials are focused on seeing annual price growth slow further towards their 2% target to ensure that high inflation is fully addressed. Powell's comments underscore the Fed's cautious approach as they monitor economic indicators closely.
