The Federal Reserve has expressed concern about the risks to the labor market and the economy if interest rates remain too high for too long.
The president said Federal Reserve(U.S. Federal Reserve) Jerome Powell said Tuesday that Inflation “It is still above” the bank’s 2% target but has improved in recent months, he added, adding that “more good data will strengthen” bets on a central bank cut. for interest rates.
In remarks that appeared to signal growing confidence that inflation will reach the 2 percent threshold needed to ease monetary policy, Powell contrasted the lack of progress on the issue in the first months of the year with recent improvements that have helped build the bank’s confidence that price pressures will continue to ease.
Powell also noted that the Federal Reserve is currently concerned about the risks to the labor market and the economy if interest rates remain too high for too long.
“After not making progress toward our 2 percent inflation goal in the first part of this year, readings over the past few months have shown modest progress,” Powell said in testimony to be delivered to the Senate Banking Committee. “More good data will bolster our confidence that inflation is moving steadily toward our 2 percent goal.”
US consumer price index data for June is due out on Thursday.
