Back to Finance
Finance

Fed Chair Powell: 'Significant Progress' on Inflation

Central bank chief's optimistic tone at press conference boosts expectations for rate cuts beginning in coming months.

Kashmir Rupee4 min read
Fed Chair Powell: 'Significant Progress' on Inflation

Federal Reserve Chair Jerome Powell struck an optimistic tone on inflation at his latest press conference, saying the central bank has made "significant progress" toward its 2% target.

Powell noted that core PCE inflation, the Fed's preferred measure, has fallen to 2.4% and is expected to continue declining. He suggested that rate cuts could begin once the Fed has greater confidence in the inflation trajectory.

"We don't need inflation to be at 2% to begin cutting," Powell said. "We need to be confident that it's heading sustainably in that direction."

Markets rallied on the remarks, with traders now pricing in three rate cuts this year starting in June.

Share this article: