Fed 'not far' from gaining confidence to cut rates: Powell

US central bank waiting to be more assured of inflation moving sustainably down to 2%

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Federal Reserve chairman Jerome Powell said on March 7 that the United States central bank was "not far" from gaining the confidence it needs in falling inflation to begin cutting interest rates.

"I think we are in the right place," Mr Powell said of the current stance of monetary policy in a hearing before the Senate Banking Committee.

"We are waiting to become more confident that inflation is moving sustainably down to 2 percent.

When we do get that confidence and we're not far from it - it will be appropriate to begin to dial back the level of restriction so that we don't drive the economy into recession." The comment showed Mr Powell's faith that recent higher than expected inflation readings and other strong economic data will not interrupt the ongoing decline in price pressures that took root in 2023.