Fed Chair: Driving down inflation towards target could take longer than expected

Fed Chair Jerome Powell said in a symposium earlier today that inflation has stiffened and held in its place during the first quarter, raising concerns about the prospects of interest rate cuts in 2024.

Powell added that it’s clear that recent inflation data didn’t give the Fed enough confidence that inflation is heading towards the target, and it could take longer than expected.

He said recent data shows strong economic growth and labor momentum, but little progress in bringing inflation towards 2%. 

He asserted the Fed will hold onto its current policies until inflation sustainably approaches the targets.