Powell says recent inflation data point to need to keep rates higher for longer

April 16, 2024 1:56 PM EDT -- Federal Reserve chairman Jerome Powell said Tuesday the recent inflation data have not given the Fed greater confidence to begin cutting rates and indicate that rates will likely need to be higher for longer.

“The recent data have clearly not given us greater confidence, and instead indicate that it’s likely to take longer than expected to achieve that confidence,” Powell said Wednesday to the Wilson Center’s Washington Forum on the Canadian Economy. The chief, however, added that policy is "well positioned to handle the risks that we face.”

In another sign that rates are likely to higher longer Powell, said that the inflation data suggest that it would be appropriate to allow restrictive policy to work overtime and return inflation sustainably to the 2% target.

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