Federal Reserve's Stance on Rate Cuts

Jerome Powell, the Federal Reserve Chair, emphasized on Wednesday that the central bank is not considering any rate cuts until there is significant progress on inflation or noticeable weakness in the labor market.

Economic Progress and Policy Positioning

Powell highlighted that the economy is moving towards the Fed's 2% inflation target while striving for maximum employment. He clarified that the removal of the reference to inflation progress towards the 2% objective from the statement was not intended to send any signals.

Labor Market Stability and Inflation Reports

He also pointed out that labor conditions have remained stable over the past six months, indicating that the current policy is well-positioned. Powell mentioned that the inflation reports for November and December showed two consecutive "good readings," but cautioned against overinterpreting these results.