United States Interest Rate

Chair Powell reinforced that the central bank does not expect it will be appropriate to reduce interest rates until it has gained greater confidence that inflation is moving sustainably toward 2%, with data for the first quarter of this year did not supporting such greater confidence, remarks to Powell's Semiannual Monetary Policy Report to the Congress showed. However, the most recent inflation readings have shown some modest further progress, and more good data would strengthen our confidence that inflation is moving sustainably toward the target. Powell added that reducing policy restraint too late or too little could unduly weaken economic activity and employment while doing it too soon or too much could stall or even reverse the progress we have seen on inflation. As a result, the Fed will continue to make decisions meeting by meeting.