Powell reinforces position that the Fed is not ready to start cutting interest rates

cnbc.com:

Federal Reserve Chair Jerome Powell on Wednesday reiterated that he expects interest rates to start coming down this year, but is not ready yet to say when.

In prepared remarks for congressionally mandated appearances on Capitol Hill Wednesday and Thursday, Powell said policymakers remain attentive to the risks that inflation poses and don't want to ease up too quickly.

«In considering any adjustments to the target range for the policy rate, we will carefully assess the incoming data, the evolving outlook, and the balance of risks,» he said. «The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.»

Those remarks were taken verbatim from the Federal Open Market Committee's statement following its most recent meeting, which concluded Jan. 31.

During the question-and-answer session with House Financial Services Committee members, Powell said he needs «see a little bit more data» before moving on rates.

«We think because of the strength in the economy and the strength in the labor market and the progress we've made, we can approach that step carefully and thoughtfully and with greater confidence,» he said. «When we reach that confidence, the expectation is we will do so sometime this year. We can then begin dialing back that restriction on our policy.»

In total, the speech broke no new ground on monetary policy or the Fed's economic outlook. However, the comments indicated that officials remain concerned about not losing the progress made against inflation and will make decisions based on incoming data rather than a preset course.

«We believe that our policy rate is likely at its peak for this tightening