US Fed official says 'premature' to expect rate cuts soon

The US Federal Reserve's fight against inflation is far from over and it is "premature" to expect rate cuts around the corner, a senior US central bank official said Friday.

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The Fed recently held its key lending rate at a 22-year high and penciled in up to three rate cuts this year, as inflation has continued to ease toward its long-term target of two percent.

As financial markets grew increasingly confident that rate cuts were coming as soon as March, Fed policymakers used recent public events to caution against starting the process of loosening monetary policy too soon, citing ongoing inflationary risks.