Why Powell says inflation is still on track: Morning Brief

Published On Dec 19, 2024, 6:00 AM

Federal Reserve Chair Jerome Powell indicated that inflation remains a significant challenge, expecting it to be higher than previously estimated. Despite some overall progress in controlling inflation and a cooling labor market, the Fed is adopting a cautious approach to future interest rate cuts, suggesting that rates will likely remain elevated for longer than expected. Powell emphasized that the economy is still recovering from shocks experienced during the COVID-19 pandemic, and he linked inflation concerns to future economic policies under the potential next administration.