Fed to Remain Patient on Rate Cuts Despite Cooling Inflation, Citing Still-Solid Growth

• Fed Chair Jerome Powell said strong economic growth allows the central bank to be patient before cutting interest rates • Inflation has cooled notably in recent months, running at 2.5% in February compared to a 2022 peak of 7.1% • Investors hoped for earlier and more substantial rate cuts, but Fed officials have struck a cautious tone • Powell said "We can, and we will be, careful about this decision — because we can" • Recent data shows consumers still spending rapidly and hiring remains solid, indicating the economy is holding up despite high rates