Fed Chair Powell Still Expects to Cut Rates This Year, but Not Yet – The New York Times

Jerome H. Powell, the chair of the Federal Reserve, said on Wednesday that he thought the central bank would begin to lower borrowing costs in 2024 but that policymakers still needed to gain “greater confidence” that inflation was conquered before making a move.“We believe that our policy rate is likely at its peak for this tightening cycle,” Mr. Powell said during testimony before the House Financial Services Committee. “If the economy evolves broadly as

expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”Mr. Powell’s comments on economic policy were largely in line with what markets have been expecting. Policymakers raised interest rates in 2022 and 2023 to slow growth and bring inflation under control, and they have been signaling for months that they could soon begin to lower those rates as price increases cool. Fed officials have also been clear that they do not want to begin cutting borrowing costs prematurely, and have kept their options open on timing.But while Mr. Powell said little that was new about the rate outlook, he made significant news on another topic: bank regulation.