Fed Chief: Inflation Improving but Rate Cuts Not Imminent, Citing Still-Strong Economy and Labor Market

Inflation has come down over the past year, but the job is not done and the Fed remains committed to fully restoring price stability.

The Fed wants to see more evidence that inflation is moving sustainably down to 2% before cutting interest rates, likely not at the March meeting.

The economy and labor market remain strong, with solid growth and low unemployment, allowing the Fed to carefully approach rate cuts.

Geopolitical risks, including the war in Ukraine, represent the biggest near-term threat to the global economy.

Powell believes U.S. engagement with the world has provided enormous economic benefits and hopes American leadership continues.