Powell's message on rate cuts

Fed Chair Jerome Powell stated that in order to begin cutting interest rates, they want to be sure that inflation has fallen to target and said, “When we gain that confidence, it will be appropriate to begin cutting interest rates.” Fed Chair Jerome Powell made a presentation to the U.S. Senate Banking Committee. Powell said that they are close to gaining the confidence needed to begin cutting interest rates. Answering questions from the Committee, Chair Powell said, “We want to be sure that inflation will fall to the 2% target in a sustainable manner. Once that confidence is established – and we’re not that far off – it will be appropriate to begin easing.” Yesterday, on the first day of his presentation of the semiannual Monetary Policy Report, Powell made statements to the U.S. House of Representatives Financial Services Committee that they would be in no rush to cut interest rates but that it would probably be appropriate to do so “at some point this year.”