A turn to rate cuts may not be far off

Higher readings: A worker arranges peaches at a fruit stand in the Pike Place Market in Seattle. Consumer prices in the second quarter rose at an annualised pace of 2.1%, excluding the volatile food and energy components. — Bloomberg

WASHINGTON: US Federal Reserve (Fed) chair Jerome Powell says the three US inflation readings over the second quarter of this year “add somewhat to confidence” that the pace of price increases is returning to the Fed’s target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.

“In the second quarter, actually, we did make some more progress” on taming inflation, Powell said at an event at the Economic Club of Washington. “We’ve had three better readings, and if you average them, that’s a pretty good place.”