In a wide-ranging interview with 60 Minutes on CBS broadcast yesterday in the US, Fed Chair Jerome Powell said the Fed will move cautiously about rate cuts.
He said the Fed requires more confidence in achieving inflation targets before taking the step of cutting rates.
The world’s largest central bank said that policy tightening is likely to cause some pain to US economy.
However, the Fed will move much slower than markets expectations when it comes to rate cuts.
He once again added that he doesn’t expect the Fed to cut rates in March, given how strong the US economic performance has been so far.
US stock indices settle near record highs ahead of Fed meeting
Powell said the Fed will update its economic forecasts at the March meeting, and he expects the Fed will maintain current interest rate forecasts.
He asserted the Fed won’t be impacted by political pressures in the US presidential elections year as politics don’t ever influence their decisions.
US Rates
Following Federal Reserve Governor Jerome Powell’s bullish remarks recently dismissing the possibility of a March rate cut, the odds of such a move tumbled to just 17.5%.
The odds of a May Fed interest rate also slipped from 60% to 57.5%.
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