Posted 2/1/2024, 12:22:00 AM
Powell Damps Hopes for Near-Term Rate Cuts, Wants More Proof of Falling Inflation
- Powell says a March rate cut is unlikely, wants more confidence inflation is falling to 2% target
- Once Fed starts cutting rates, Powell suggests cuts could come every meeting
- Quantitative tightening balance sheet reduction may last longer than expected
- Fed wants to see more declines in goods prices and rent costs before confidence on inflation
- Markets sold off on Powell's comments dashing hopes of near-term rate cuts