Federal Reserve Chairman Jerome Powell testified that the Fed might consider reducing interest rates later in 2023 if inflation falls back to the target of 2% annually. His testimony before a congressional committee hinted at a possible shift in policy amid concerns about rising inflation. Powell is expected to face further questioning on Thursday.
Federal Reserve Chairman Jerome Powell testified to the Senate Banking Committee, reiterating his anticipation for potential interest rate cuts contingent on future incoming data. Emphasizing that inflation must show signs of decelerating towards the Fed's target, Powell noted that current evidence is insufficient. He also addressed monetary policy and the proposed Basel III bank capital regulations, facing questions in his last public appearance before the Fed's upcoming meeting in mid-March.
