"Powell Testifies: Fed's Stance on Interest Rate Cuts and Market Response"

Federal Reserve Chairman Jerome Powell reiterated that while he expects interest rates to start coming down this year, the Fed is not yet ready to make a move, emphasizing the need for greater confidence in sustainable inflation progress. Powell's remarks indicated that the Fed remains cautious about not losing ground against inflation and will base decisions on incoming data rather than a preset course. Despite market expectations for aggressive easing, the Fed's cautious approach has shifted those expectations, with futures market pricing pointing to the first rate cut coming in June. Powell also highlighted the progress made toward the 2% inflation goal and the need to balance economic growth with inflation risks.