Powell (Fed): We want extra inflation information. The US economic system is robust: we now have time | EUROtoday

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“We have made good progress in bringing down inflation, with headline and core inflation at 2.6% indicating that progress has been significant. But we need to see more data to be sure that the levels of the disinflation process, which has started again, are real,” mentioned Federal Reserve Chairman Jerome Powell, talking at a roundtable on the ECB Forum in Sintra, Portugal. The watch for extra information earlier than with the ability to lower the principle rates of interest, which within the US are within the vary of 5.25%-5.50%, stays confirmed.

On a panel with ECB President Christine Lagarde and Brazilian Central Bank Governor Roberto Campos Neto, Powell didn’t reply a query about the potential for a fee lower in September. “We need to be more certain, more confident,” he mentioned.

Powell insisted lots on the state of the labor market within the US, which “is strong” and on the rising economic system. “The Federal Reserve's monetary policy is restrictive and this is appropriate,” he identified, recalling that the forecasts of a recession in 2023 had been flawed and that the US GDP grew above 3%.

The Fed chair reiterated that he’s conscious of working two dangers: the danger of slicing charges too shortly, with out fixing the inflation downside to the purpose of getting to boost charges once more later, with a disruptive impression on the economic system. And the danger of maintaining charges excessive for too lengthy, additionally on this case damaging the economic system. For this cause, the Fed can have to have the ability to handle this double threat and discover the steadiness between these two dangers.

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