The News
US Federal Reserve Chair Jerome Powell told lawmakers Tuesday that the job market has cooled considerably and is no longer “overheated,” adding that more “good data” would strengthen the case for an interest rate cut in the next few months.
Powell did not signal when the Fed could look to cut rates, two days before a key batch of new monthly inflation data is released. But he told the Senate committee that holding interest rates high for too long would threaten economic growth and jobs.
He emphasized a balance between managing inflation and avoiding a sharp rise in unemployment if policy restraint is reduced “too late or too little.”
“Elevated inflation is not the only risk we face,” he said.
Powell said recent figures have shown “modest further progress” toward the Fed’s goal of 2% inflation.
“We need just to see more good inflation data. That’s all,” Powell said when asked about the timing of possible cuts.
