Inflation is slowing steadily, but it’s too early to declare victory or to discuss when the Federal Reserve might cut interest rates, Chair Jerome Powell said. Powell noted that consumer prices, excluding volatile food and energy costs, rose at just a 2.5% annual rate in the past six months. That’s not far above the Fed’s 2% inflation target. Still, more progress is needed, Powell said. He added, “It would be premature to conclude with confidence” that the Fed has raised its benchmark interest rate high enough to fully defeat high inflation. Nor is it time to “speculate on when policy might ease,” Powell said, referring to the possibility of cuts in the Fed’s benchmark interest rate.
