Fed Chair Powell Signals Resumption of Disinflation Trend, Eyes 2% Inflation Target

Jul 2, 2024, 01:40 PM

Federal Reserve Chairman Jerome Powell stated that the disinflation trend shows signs of resuming. He emphasized that the Federal Reserve has made significant progress on inflation and is getting back on a disinflationary path. Powell noted that the labor market remains strong and that the recent inflation readings suggest a continued disinflationary trend. However, he mentioned that the Fed needs to be more confident before reducing policy rates and wants to see more data similar to recent trends. Powell also highlighted the goal of moving inflation down to 2%. Powell's remarks were made during a panel at the ECB conference in Sintra.