Powell Signals Rates Could Move Either Way Amid Mixed Economic Signals
TL;DR
Powell said the U.S. economy faces mixed signals: downside labor-market risks argue for keeping rates low, while upside inflation risks argue against simply staying accommodative. The Fed remains committed to returning inflation to 2%, inflation expectations look stable, and there’s no immediate rate decision due to unresolved effects from the Iran war. The Fed’s March dot plot still indicates one rate cut in 2026, underscoring uncertainty about the policy path amid opposing forces.
Topics:businesseconomy-and-politics#economy-and-politics#federal-reserve#inflation#interest-rates#labor-market#powell
- Fed chief Powell says risks to economy suggest rates could go lower or higher MarketWatch
- Watch Fed Chair Jerome Powell speak live to an economics class at Harvard CNBC
- Americans’ expectations for inflation will shape Fed’s response to Iran war, Powell says CNN
- Powell says Fed positioned to 'wait and see' how war affects economy Reuters
- Live: Fed’s Powell Speaks at Harvard Economics Class Bloomberg.com
Want the full story? Read the original reporting
Read on MarketWatch