#PowellRemarks

Federal Reserve Chair Jerome Powell’s latest remarks sent a clear signal to markets, policymakers, and investors. Powell reaffirmed the Fed’s cautious stance, emphasizing that while inflation has come down from its peak, it remains above the central bank’s 2% target. He stressed that the Fed will remain data-dependent and is not yet ready to declare victory over inflation.

Powell noted that the labor market remains strong, but there are signs of cooling, which the Fed is monitoring closely. He highlighted that holding interest rates steady for longer may be necessary to ensure inflation trends sustainably downward.

Markets reacted with caution, interpreting his comments as a signal that rate cuts may be delayed further into the year. Powell’s measured tone continues to underscore the Fed’s commitment to balancing inflation control with economic stability.

In essence, Powell’s remarks reinforce the Fed’s “wait-and-see” approach as they navigate a complex economic landscape.