Powell signals rate cut delay after run of surprises

If price pressures persist, Powell said, the Fed can keep rates steady for “as long as needed”. — Bloomberg

NEW YORK: US Federal Reserve (Fed) chairman Jerome Powell has signalled policymakers will wait longer than anticipated to cut interest rates following a series of surprisingly high inflation readings.

Powell pointed to the lack of additional progress made on inflation after the rapid decline seen at the end of last year, noting it will likely take more time for officials to gain the necessary confidence that price growth is headed towards the Fed’s 2% goal before lower borrowing costs.