Powell: Latest inflation data shows progress

Fed Chairman Jerome Powell said in a speech in Washington that there was progress in the second quarter inflation figures. Fed Chairman Powell made statements about the economy at the Washington Economic Club. Referring to the latest inflation figures, Powell said, “The last three inflation figures in the second quarter have instilled confidence that inflation is moving towards the target.” Powell stated that inflation is expected to continue to slow this year and reiterated his statement that they should wait until they gain more confidence that inflation is falling sustainably towards the 2% target. Powell said that the economy has performed very well in the last few years. The Fed Chairman emphasized that the labor market is better balanced. Powell did not give any signals about the timing of the interest rate cut. The Fed’s next meeting will be held on July 30-31. The Fed is not expected to change interest rates at this meeting.