Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Federal Reserve Chair Jerome Powell indicated Tuesday that the central bank anticipates cutting interest rates later this year, as inflation continues to moderate.
During a House hearing, Powell stated that a majority of Fed officials believe it would be "appropriate to cut later this year." He noted that lower inflation readings and a weaker labor market "could mean earlier cut."
Powell emphasized that the Fed’s primary job remains "keeping inflation under control," while acknowledging that the economic outlook continues to evolve. "Story has been evolving, our thinking has been adapting," he said.
The Fed Chair pointed out that the Atlanta Fed’s GDP model doesn’t suggest a recession is imminent. He also mentioned that rental inflation "is now coming down quite regularly."
When asked about potential tariffs, Powell declined to comment directly, saying it would be "inappropriate for Fed to comment on tariffs." However, he acknowledged that "inflation is projected to have moved up due to tariffs," though he added, "don’t know how much costs will be passed to consumers."
Powell explained that the Fed hasn’t moved rates to neutral levels because of "forecasts for inflation," stating that the central bank "can’t ignore forecasts for higher inflation."
Regarding the labor market, Powell said, "we don’t see weakness in the labor market," recalling that "labor market concerns drove half-point cut last year."
On other topics, Powell mentioned it’s "too early to know economic impact of Mideast tensions" and confirmed that "banks are free to provide services to crypto industry."
He also addressed housing issues, stating that "Fed policy won’t be driver of longer-run housing supply" and that the central bank "can’t affect longer-run housing shortage in US."