Key Points
The U.S. Federal Reserve can be "prudent" in deciding when to cut its benchmark interest rate, with a strong economy allowing central bankers time to build confidence inflation will continue falling, Fed chair Jerome Powell told the CBS news show "60 Minutes" in an interview that aired Sunday night...
"The prudent thing to do is...to just give it some time and see that the data confirm that inflation is moving down to 2% in a sustainable way," Powell said..
"We want to approach that question carefully," with the economy's current strength keeping the risk of recession reduced as policymakers wait for the final bits of data that will convince them to proceed with rate cuts...
In this case the message was a positive one of falling inflation, strong employment, and a coming easing of credit conditions -- all without the "pain" that Powell had earlier warned was in store for households as the Fed contained the worst outbreak of inflation in 40 years...
Absent some unexpected development, the start of rate cuts "is really going to depend on the data," Powell said.. Asked about Fed policymaker projections in December that anticipate three quarter point rate cuts this year, the Fed chair said that "nothing has happened in the meantime that would lead me to think that people would dramatically change their forecasts.".
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