Inflation “now shows signs of resuming its disinflationary trend,” Mr. Powell said on Tuesday at the European Central Bank’s annual conference in Sintra, Portugal.
It was an optimistic message after the Fed’s fight against inflation hit a speed bump earlier this year.
Fed officials have been waiting to see further progress on inflation before they begin to lower interest rates, which are currently set to their highest level in decades, at 5.3 percent.
Mr. Powell declined to say exactly when officials could begin to cut borrowing costs, but suggested that they could lower rates if inflation data continued on its current track or if the labor market weakened.
“What we’d like to see is more data like what we’ve been seeing recently,” Mr. Powell said, later adding, “We have the ability to take our time and get this right.”
Persons:
Jerome H, Powell, Mr, ”
Organizations:
Federal Reserve, Fed, Central
Locations:
United States, Sintra , Portugal