Powell: Fed Needs More Evidence of Declining Inflation before Moving Forward with Rate Cut

US Federal Reserve Chairman Jerome Powell said that more evidence of declining inflation is needed before moving forward with interest rate cuts.

Powell added, on the sidelines of the European Central Bank's Forum for Global Central Banks in Portugal, Tuesday, that the slowdown in the growth of the Personal Consumption Expenditures (PCE) to 2.6% in May shows the effectiveness of the Federal Reserve's monetary policy.

He pointed out that the bank wants to ensure that the recorded levels are a true reading of what is happening in core inflation within the United States.

The US Federal Reserve kept interest rates unchanged for its seventh consecutive meeting, and decided again not to lower them as it continued its battle with inflation, and expected one cut in 2024.

Prices in the United States saw little change in May while consumer spending rose moderately, a trend that may bring the Federal Reserve closer to starting to lower interest rates this year.