"Powell Signals Delay in Interest Rate Cuts as Inflation Progress Stalls"

Federal Reserve Chair Jerome Powell expressed concern over the lack of progress in reaching the 2% inflation target, indicating that it may take longer than expected. The Fed has raised interest rates sharply over the past two years, but Powell stated that policymakers will maintain the current level of restriction until price pressures are tamed. The recent data have not given greater confidence, and the timing of rate cuts hinges on the inflation trajectory. Most investors now expect the Fed to begin cutting rates in September, with just two reductions anticipated this year. Despite higher rates, consumers continue to spend and businesses are hiring, but Fed officials have indicated that higher interest rates will eventually weigh on growth.