US is on the path of disinflation and further data is needed before interest rate cuts = FRB chairman

July 3, 2024 2:16 AM GMT+9

Chairman Powell of (FRB) expressed the view at a meeting hosted by the European Central Bank (ECB) held in Portugal on the 2nd that although the United States has returned to the “path of disinflation,” the FRB “wants to have confidence” that inflation is slowing down before starting interest rate cuts, and that it is necessary to confirm further data.
Chairman Powell expressed recognition that the recently announced US indicators “suggest that they are returning to the path of disinflation,” and then stated, “I want to understand whether the levels we are currently confirming accurately indicate the actual state of underlying inflation.”
Furthermore, “I want to have even greater confidence” that inflation is falling continuously toward 2% before policy mitigation begins, and “frankly speaking, the US economy is doing well, so we can respond over time.”