{"id":4396,"date":"2024-05-15T12:30:42","date_gmt":"2024-05-15T12:30:42","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/05\/15\/fed-chair-jerome-powell-says-inflation-has-been-higher-than-thought-and-expects-rates-to-hold-steady\/"},"modified":"2024-05-15T12:30:42","modified_gmt":"2024-05-15T12:30:42","slug":"fed-chair-jerome-powell-says-inflation-has-been-higher-than-thought-and-expects-rates-to-hold-steady","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/05\/15\/fed-chair-jerome-powell-says-inflation-has-been-higher-than-thought-and-expects-rates-to-hold-steady\/","title":{"rendered":"Fed Chair Jerome Powell says inflation has been higher than thought and expects rates to hold steady"},"content":{"rendered":"

Federal Reserve Chair Jerome Powell reiterated Tuesday that inflation is falling more slowly than expected and will keep the central bank on hold for an extended period.<\/p>\n

Speaking to the annual general meeting of the Foreign Bankers\u2019 Association in Amsterdam, the central bank leader noted that the rapid disinflation that happened in 2023 has slowed considerably this year and caused a rethink of where policy is headed.<\/p>\n

<\/div>\n

\u201cWe did not expect this to be a smooth road. But these [inflation readings] were higher than I think anybody expected,\u201d\u00a0Powell\u00a0said. \u201cWhat that has told us is that we\u2019ll need to be patient and let restrictive policy do its work.\u201d<\/p>\n

While he expects inflation to come down through the year, he noted that hasn\u2019t happened so far.<\/p>\n

\u201cI do think it\u2019s really a question of keeping policy at the current rate for longer than had been thought,\u201d he said.<\/p>\n

However, Powell also repeated that he does not expect the Fed to be raising rates.<\/p>\n

The Fed has been holding its key overnight borrowing rate in a targeted range of 5.25%-5.5%. Though the rate has been there since July, it is the highest level in some 23 years.<\/p>\n

\u201cI don\u2019t think that it\u2019s likely, based on the data that we have, that the next move that we make would be a rate hike,\u201d he said. \u201cI think it\u2019s more likely that we\u2019ll be at a place where we hold the policy rate where it is.\u201d<\/p>\n

Markets vacillated as Powell spoke around 10 a.m. ET and major averages were near breakeven approaching noon ET. Treasury yields edged lower, and futures traders slightly raised the market-implied probability of the Fed\u2019s first rate cut coming in September.<\/p>\n

Powell\u2019s comments mirrored sentiments he expressed during his May 1 news conference after the most recent Federal Open Market Committee meeting.<\/p>\n

The committee unanimously voted to hold the line on rates while also expressing that it had seen a \u201clack of further progress\u201d on getting inflation back to the Fed\u2019s 2% target, despite a series of 11 interest rate increases.<\/p>\n

Tuesday brought a fresh round of discouraging inflation data, when the Labor Department\u2019s producer price index, a proxy for wholesale costs, rose a higher-than-expected 0.5% in April on the back of a surge in services prices.<\/p>\n

Though the index on its surface indicated further price pressures, Powell called the report \u201cmixed\u201d as some of the components showed easing movement.<\/p>\n

\u201cIs inflation going to be more persistent going forward? \u2026 I don\u2019t think we know that yet. I think we need more than a quarter\u2019s worth of data to really make a judgement on that,\u201d he said.<\/p>\n<\/p>\n

This post appeared first on NBC NEWS<\/div>\n","protected":false},"excerpt":{"rendered":"

Federal Reserve Chair Jerome Powell reiterated Tuesday that inflation is falling more slowly than expected and will keep the central bank on hold for an extended period. Speaking to the annual general meeting of the Foreign Bankers\u2019 Association in Amsterdam, the central bank leader noted that the rapid disinflation that happened in 2023 has slowed […]<\/p>\n","protected":false},"author":0,"featured_media":4397,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=4396"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4396\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/4397"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=4396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=4396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=4396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}