Fed's Powell cautions little conviction in forecasted rate outlook

By Michael S. Derby

(Reuters) -Federal Reserve Chairman Jerome Powell cautioned on Wednesday not to place too much stock in the central bank's interest rate forecasts, which could change based on incoming data, especially on the inflation front.

On a day when the Fed reiterated its expectation that its short-term interest rate target will be lowered twice this year, Powell said at a press conference following Fed's policy meeting that “no one holds these...rate paths with a great deal of conviction, and everyone would agree that they're all going to be data dependent.”

Powell also said, "Every outside forecaster and the Fed is saying, is that we expect a meaningful amount of inflation to arrive in coming months, and we have to take that into account."

(Reporting by Michael S. Derby and Dan Burns; Editing by Leslie Adler)

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