Powell: Too Soon to Declare Victory Over Inflation Despite Recent Progress

Powell said the Fed needs more evidence of falling inflation before cutting interest rates, despite expectations of rate cuts this year.

Inflation has fallen from a 9.1% peak in June 2022 to 3.2% last month, but still remains above the Fed's 2% target.

The economy has remained resilient with sturdy growth and a strong job market, raising hopes of a "soft landing" with lower inflation but no recession.

Powell said the economy's strength means the Fed isn't under pressure to cut rates yet and can wait to see further inflation trends.

When asked if he'd declare victory over inflation, Powell demurred, saying "We'll jinx it. I'm a superstitious person."