"Powell's Warning: Fed Not Confident Rates Are Restrictive Enough"

Federal Reserve Chairman Jerome Powell stated that the Fed is not confident they have reached a sufficiently restrictive level on monetary policy to bring inflation down to target, suggesting that further rate hikes cannot be ruled out. Powell acknowledged that U.S. inflation has come down but remains above the 2 percent target, indicating that the Fed is not ready to accept that inflation is on a sustainable path lower. Traders adjusted their expectations for rate cuts, with the first cut now expected in June next year.