Fed's Powell says 'greater confidence' that prices are falling sustainably is still needed

(Sharecast News) - The head of US central bank said that "more good data" would boost its confidence that inflation was on a one way trip back to its 2% target. Inflation data published during the first quarter of 2024 on the other hand had not given it the "greater confidence" that it needed to support a rate cut.

In remarks prepared for his semi-annual testimony before Congress, Jerome Powell also said that the risks towards the Federal Reserve being able to attain its goals for jobs and inflation were "coning into better balance".

Nonetheless, in response to a question from one of the lawmakers, Powell said: "Today, I will not be sending any signals about" the timing of rate cuts.

Regarding economic activity, the Fed chairman highlighted how non-farm payrolls had grown by 222,000 per month over the first half of the year, in part due to the strong pace of immigration.

He also said that the monetary authority had the operational independence required to take a longer-term perspective in pursuing its dual mandate of maximum employment and stable prices.