US Fed's Powell: Expect inflation to fall, though not as confident as before; next move unlikely to be a rate hike

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US Federal Reserve Chair Jerome Powell on Tuesday said he expects inflation to continue declining through 2024 as it did last year, though his confidence in that has fallen after prices rose faster than expected through the first quarter...

"I expect that inflation will move back down ... on a monthly basis to levels that were more like the lower readings that we were having last year," Powell said at a banking event in Amsterdam..

"We did not expect this to be a smooth road," Powell said.. Powell spoke shortly after new data showed producer prices in April rose more quickly than expected, a possible sign of pressure building on the prices charged to consumers...

Part of the uncertainty around the Fed's rate plans relates to the strength of the U.S. economy, which has continued a run of stronger-than-expected growth despite the Fed's record monetary tightening...

He said he expected the economy to grow about 2% this year, slightly above the Fed's estimates of the economy's underlying potential, with a labor market that is easing slightly but remains strong...

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