<br><div><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Fed's Jerome Powell says neutral rate may be higher"/><p class="gnt_ar_b_p">Federal Reserve Chair Jerome Powell said Wednesday the central bank won’t begin <a target="_blank" href="http://www.usatoday.com/story/money/2024/02/23/fed-interest-rate-cut-delay-cause-recession/72698385007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">cutting its key interest rate</a> “until it has gained greater confidence that inflation is moving sustainably toward” its 2% goal, noting the move will likely occur “at some point this year.”</p><p class="gnt_ar_b_p">His comments, in prepared remarks he delivered <a target="_blank" href="https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=408623" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">before the House Financial Services Committee</a> at 10 a.m., echo those he made at the Fed’s last meeting in late January.</p><p class="gnt_ar_b_p">In the text, Powell said <a target="_blank" href="http://www.usatoday.com/story/money/2024/03/04/inflation-definition-causes-hyperinflation/72845826007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">inflation</a> “has eased substantially” and he did not mention a recent rebound in monthly price increases that led some economists to push back their forecast for the first rate decrease to later in the year. That could be a positive signal that Fed officials are not overly concerned by the price spike.</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">Responding to questions from committee members, Powell added, "because the economy has been so strong we think we can and should be careful" about slicing rates. He added the Fed wants "to see more good inflation readings" to feel confident that the recent pullback in price gains won't stall or reverse.</p><figure class="gnt_em gnt_em_img"><img class="gnt_em_img_i" style="height:440px" fetchpriority="high" data-g-r="lazy" src="https://www.usatoday.com/gcdn/authoring/authoring-images/2024/03/06/USAT/72867779007-xxx-20240306-news-jerome-powell-house-financial-services-commi.jpg?width=660&height=440&fit=crop&format=pjpg&auto=webp" srcset="https://www.usatoday.com/gcdn/authoring/authoring-images/2024/03/06/USAT/72867779007-xxx-20240306-news-jerome-powell-house-financial-services-commi.jpg?width=1320&height=880&fit=crop&format=pjpg&auto=webp 2x" decoding="async" alt="Federal Reserve Chair Jerome Powell testifies to the House Financial Services Committee on the first of two days of semi-annual testimony to Congress in Washington on March 6, 2024."/></figure><h2 class="gnt_ar_b_h2">What is the inflation rate in 2024?</h2><p class="gnt_ar_b_p"><a target="_blank" href="http://www.usatoday.com/story/money/2024/02/13/inflation-how-its-affecting-consumers-now/72576975007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">In January, inflation</a> overall rose 0.3% while a core measure that excludes volatile food and energy items increased 0.4%, both substantially higher than the recent trend, according to the personal consumption expenditures index, the Fed’s preferred gauge.</p><p class="gnt_ar_b_p">But those readings still pushed down annual inflation to 2.4% and the core yearly measure to 2.8%. Personal consumption...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/2024/03/06/fed-interest-rate-cuts-powell/72846917007/">Read more <span>➤</span></a> </div>
