"Powell's Cautionary Stance: Fed Not Confident in Restrictive Rates, Keeping Options Open"

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, indicating that further rate hikes cannot be ruled out. Powell acknowledged that U.S. inflation has decreased over the past year but remains above the 2 percent target. He emphasized that the Fed will continue to move carefully on future policy decisions to avoid being misled by short-term data or overtightening. Traders adjusted their expectations for rate cuts, now anticipating the first cut in June 2020 instead of May.