Fed Chair Powell Confirms ‘Higher for Longer’ as Strong Inflation Data Persists

Federal Reserve Chair Jerome Powell suggested on Tuesday that strong first-quarter inflation figures have prompted uncertainty regarding potential interest rate cuts beginning this summer. Powell stressed the necessity for additional data to bolster confidence in a rate cut, implying a longer timeframe than initially expected. Nevertheless, Powell reiterated the Fed’s preparedness to lower rates in response to a notable economic slowdown. Market reactions varied, with minor decreases in the S&P 500 and higher Treasury yields.

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