PT Solid Gold Berjangka | Powell Says Fed Likely to Wait Beyond March to Cut

01:07 05 February in Fiscal & Monetary, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

The Fed Fiskal & Moneter Jerome Powell PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | Federal Reserve Chair Jerome Powell said policymakers will likely wait beyond March to cut interest rates as he sought to explain the central bank’s rationale for eventual reductions to a broad public audience.

In an interview conducted Thursday with CBS’s 60 Minutes that aired Sunday evening, Powell reiterated that Fed officials want to see more economic data to assure that inflation is on a sustainable path to their 2% goal, according to a transcript provided by CBS.

The “danger of moving too soon is that the job’s not quite done, and that the really good readings we’ve had for the last six months somehow turn out not to be a true indicator of where inflation’s heading,” Powell said in the interview with CBS’s Scott Pelley.

“We don’t think that’s the case,” he said. “But the prudent thing to do is to, is to just give it some time and see that the data continue to confirm that inflation is moving down to 2% in a sustainable way.”

Powell said it isn’t likely that the Federal Open Market Committee, the Fed panel that sets interest rates, “will reach that level of confidence” about inflation’s path by its March 19-20 gathering, echoing remarks he made at a press conference Wednesday.

Treasuries slid at the open in Asia as Powell’s comments underscored the likelihood that bond investors had overshot in pricing for rapid rate cuts. Treasuries fell across all maturities, with benchmark 10-year yields climbing four basis points to 4.06% as of 8:04 a.m. in Hong Kong.

The Fed chief also said he didn’t expect policymakers to “dramatically” change their 2024 interest-rate forecasts, which in December showed they expect their benchmark lending rate to reach 4.6% by the end of the year, according to their median estimate.

Source : Bloomberg