Jerome H. Powell, the Federal Reserve chair, reiterated that policymakers were poised to hold interest rates steady at a high level as they waited for evidence that inflation is slowing further.
Fed officials entered 2024 expecting to make interest rate cuts, having lifted borrowing costs sharply to a more than two-decade high of 5.3 percent between 2022 and the middle of last year.
Speaking during a panel discussion in Amsterdam, Mr. Powell said that officials had been surprised by recent inflation readings.
The Consumer Price Index inflation measure, which is set for release on Wednesday, came down rapidly in 2023 but has gotten stuck above 3 percent this year.
The Fed’s preferred measure, the Personal Consumption Expenditures index, is slightly cooler, but it, too, remains well above the Fed’s 2 percent inflation goal.
Persons:
Jerome H, Powell
Organizations:
Federal Reserve, Fed, Mr
Locations:
Amsterdam