Federal Reserve Chair Jerome Powell reiterated on Wednesday that he anticipates interest rates to commence a descent later in the year, yet refrained from specifying a timeline. In prepared remarks for congressional hearings on Capitol Hill on Wednesday and Thursday, Powell emphasized policymakers' vigilance regarding inflation risks, opting for a cautious approach.
"We believe that our policy rate is likely at its peak for this tightening cycle. If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year," Powell said, emphasizing the uncertainty in the economic outlook and the necessity for sustained progress toward the 2% inflation objective.
