According to reports, Federal Reserve Chairman Powell stated that inflation may not be as strong as expected. If this is the case, it could mean that interest rates may be cut sooner. A weak labor market could also lead to an earlier rate cut. However, if the labor market is strong, rate cuts may be delayed.
Federal Reserve Chairman Powell also stated that there is currently no reason to cut rates as both internal and external economic forecasts suggest that inflation will rise significantly this year.
