"Powell Stands Firm: Fed Still Expected to Cut Rates Despite Uncertain Inflation Progress"

Federal Reserve Chair Jerome Powell assured Congress that decisions on interest rate cuts will be based on economic data, with a focus on maximum employment and price stability. While rate reductions are likely later this year, Powell cautioned that progress on lowering inflation is not assured, keeping the Fed from committing to a timetable. The economy's unexpected strength and conflicting data on inflation have made the decision on rate cuts challenging, with Powell's testimony coming at a time when inflation is close to the Fed's 2% target but the economy remains strong.