Powell reinforces Fed’s cautious approach toward further interest rate hikes

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell suggested that the Fed is in no hurry to further raise its benchmark interest rate, given evidence that inflation pressures are continuing to ease at a gradual pace. At the same time, Powell did not rule out another rate hike to help reduce inflation to the Fed’s 2% target level. Inflation, as measured by the U.S. consumer price index, has sunk from a 9.1% peak last year but is still 3.7%. “We are not confident,” Powell said, that the Fed’s benchmark rate is high enough to steadily reduce inflation to 2%. He added: “We know that ongoing progress toward our 2% goal is not assured. Inflation has given us a few head fakes.”