Jay Powell backed a gradual approach to lowering interest rates, saying the US central bank does not need to be “in a hurry” during a strong economy and a “bumpy” path down for inflation.
The Federal Reserve chair hailed the “remarkably good” performance of the world’s largest economy, noting “significant progress” in taming the pace of price increases.
Given the economy’s resilience, Powell signalled little urgency to ease monetary policy quickly, instead cautioning there was still work to do to get inflation all the way back to the central bank’s 2 per cent target.
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