Fed Chairman: We need more evidence of slowing inflation before cutting interest rates

US Federal Reserve Chairman Jerome Powell said that it will take a while for monetary policy makers to assess the current situation of inflation, making the timing of possible interest rate cuts uncertain.

Powell indicated in prepared remarks at a question-and-answer session at Stanford University that he and his colleagues are in no rush to ease monetary policy.

He added: At the level of inflation, it is too early to say whether the latest readings represent more than just a bump.

He continued: We do not expect that it would be appropriate to cut the interest rate until we are more confident that inflation is moving sustainably to the 2% target.. Given the strength of the economy and the progress achieved on the level of inflation so far, we have time to allow incoming data to guide our policy decisions.

Market expectations broadly indicate that the Fed will begin easing monetary policy later this year, despite a readjustment of expectations regarding the frequency and timing of rate cuts.