Federal Reserve chairman says they need irrefutable proof that inflation is retreating to its 2 per cent target. Rather, they see a number of benefits in waiting a bit longer to lower their policy rate from its current 5.25-5.5 per cent level. Reinforcing the case is a meaningful shift under way in the labour market. Importantly, however, the Fed does not want the labour market to deteriorate further. “If you wait, there is a risk on the economic side that you see more of a deterioration in the labour market,” he said.

Source: The Irish Times July 22, 2024 22:19 UTC