Powell reiterates rates likely headed lower, wants to see 'more good data'
The head of America's central bank told Congress that he continued to believe that interest rates were likely headed lower in 2024.
However, the exact date of the first rate cut remained uncertain as progress towards the Federal Reserve's 2.0% inflation target was not assured yet.
Likewise, "reducing policy restraint too late or too little could unduly weaken economic activity and employment," Powell argued in remarks prepared for his semi-annual testimony before the U.S. House of Representatives.
"In other words, the waiting game continues. Everything else in the written testimony is boilerplate about progress on inflation over the past year and the strength of the labor market," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
"Finally, the statement says nothing about the future pace of QT. Mr. Powell likely will be quizzed on this but we expect him just to say that the issue is currently under discussion."
In response to journalists' questions following his speech, Powell said policymakers were not waiting for good data but rather "more good data".
-- More to follow --