Powell: Lack of Progress on Inflation Means Rates May Stay Higher Longer

Powell says inflation data shows a "lack of progress" towards 2% target, indicating rates may stay higher for longer
Cites higher-than-expected inflation reports in early 2023 as evidence that progress on reducing inflation has stalled
Notes labor market remains strong, but higher rates haven't cooled economy as much as expected yet
Says rates will stay elevated "for as long as needed" until Fed sees clear evidence inflation pressures are subsiding
Investors now expect fewer rate cuts this year (2 instead of 6) and delayed timing (September instead of March) due to persistent inflation