#PowellRemarks Powell’s Cautious Stance on Rate Cuts Weighs on Markets

Federal Reserve Chair Jerome Powell reiterated a patient approach to interest rate cuts, signaling that inflation remains too high for immediate policy easing. Despite recent cooling in price pressures, Powell emphasized the need for more "confidence" that inflation is sustainably moving toward the 2% target before reducing rates.

Markets reacted cautiously, with stocks dipping and Treasury yields rising as hopes for a June rate cut dimmed. Powell’s remarks suggest the Fed will keep rates higher for longer, prioritizing economic stability over premature stimulus. Investors now await further data to gauge the timing of potential monetary easing.