Fed Chair Powell calls talk of cutting rates ‘premature’ and says more hikes could happen

Fed Chair Powell calls talk of cutting rates ‘premature’ and says more hikes could happen

Fed Chair Powell said that talk of cutting rates was “premature” and that more interest rate hikes could still take place. He noted that while the economy is doing well, there are still areas of concern, such as the growing public debt and slower growth in productivity. He also said it was premature to be discussing cutting rates as it could lead to a period of excessive growth and rising inflation.

The Chair went on to note that the Fed will continue to monitor economic developments closely when making decisions on the trajectory of interest rates. He also said that the decision to reduce rates would depend on “substantial further progress” being made towards achieving the Fed’s policy goals such as strengthening the labor market and keeping inflation at an appropriate level.