At the ECB Forum on Central Banking, Federal Reserve Chair Jerome Powell emphasized a careful approach Tuesday to potential interest rate cuts and stressed the critical issue of the United States’ unsustainable debt path.
Speaking on a panel with ECB President Christine Lagarde and Central Bank of Brazil Governor Roberto Campos Neto in Sintra, Portugal, Powell reiterated that the latest inflation readings indicate a return to a disinflationary path, but warned that more data is needed before considering rate cuts.
When asked by CNBC’s Sara Eisen why the Fed hasn’t followed the European Central Bank’s rate cuts, Powell responded that the U.S. is on “a little bit different journey.”
He highlighted the Fed’s achievements in reducing inflation and maintaining a robust labor market. “We’ve made quite a bit of progress in bringing inflation back down toward target,” Powell said.
“We want to be more…
