HomeLive CommentsFed's Powell: We're getting back on disinflation path

Fed’s Powell: We’re getting back on disinflation path

At the ECB forum, Fed Chair Jerome Powell highlighted the “quite a big of progress” made in reducing inflation toward 2% target. He also acknowledged the recent inflation readings, stating, “The last reading and the one before it, to a lesser extent, suggest that we are getting back on the disinflationary path.”

Powell emphasized the need for Fed to be confident that inflation is sustainably moving toward the 2% target before considering policy easing.

He also cautioned against premature rate cuts, “We’re well aware that if we go too soon, we can undo the good work we’ve done. If we do it too late, we could unnecessarily undermine the recovery and the expansion.”

When asked about the possibility of a rate cut in September, Powell refrained from providing a specific timeline, saying, “I’m not going to be landing on any specific dates here today.”

At the same panel, ECB President Christine Lagarde said Eurozone is “very advanced on that disinflationary path”. “We are in that slow recovery that came about in the first quarter and which we hope will persevere but all of that is (fraught) with uncertainty and big question marks about the future,” she added.

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