Fed Remains Cautious on Rate Cuts Despite Easing Inflation

• Powell says Fed wants to see more evidence of declining inflation before cutting rates • Fed raised rates aggressively in 2022 to fight high inflation, reaching 4-decade peak of 9.1% • Inflation has come down but still remains above 2% target • Economy has remained resilient with steady growth and low unemployment • Powell avoids declaring victory over inflation, wanting more sustained evidence of progress