US inflation slowing to Fed’s target: Powell
(VOVWORLD) - US Federal Reserve (Fed) Chair Jerome Powell said on Monday that recent inflation data from the second quarter gives confidence that the pace of price increases is returning to the Fed's target of 2%, remarks that suggest a turn to interest rate cuts may not be far off.
 US Federal Reserve Chair Jerome Powell testifies before a Senate Banking, Housing and Urban Affairs Committee hearing on "The Semiannual Monetary Policy Report to the Congress," on Capitol Hill in Washington, July 9, 2024. (REUTERS) |
Powell said at an event at the Economic Club of Washington that Fed didn't gain any additional confidence in the first quarter, but the three readings in the second quarter, including the one from last week, do add somewhat to confidence.
The betting among investors has tilted strongly towards the Fed starting rate cuts in September. Powell said on Monday he does not see the US economy hitting major economic turbulence or an outright recession.