Powell Unfazed by Hot Inflation Data, Still Signals Possible Rate Cuts Ahead

• Fed Chair Powell seems unaffected by recent hotter inflation data, saying it doesn't change the overall story of inflation gradually declining • Powell would not reveal timing for potential first rate cut, saying decisions will be made meeting-by-meeting • Language Powell used indicates June rate cut still a possibility if inflation softens more • Fed members discussed balance sheet policy but made no decisions; slowing quantitative tightening likely "fairly soon"
• Fed still forecasts 3 rate cuts this year despite upgrading economic outlook, though some doves backing off previous forecasts of 4 cuts