Powell says US data offer confidence that inflation is on path to 2%

Federal Reserve Chair Jerome Powell said second-quarter economic data has provided policymakers greater confidence that inflation is heading down to the central bank’s 2% goal, possibly paving the way for near-term interest-rate cuts.

Powell highlighted the three latest inflation readings, though he made clear he didn’t intend to send any specific message about the timing of rate reductions. He also cemented a shift in tone toward emphasizing potential risks to the labor market, alongside the Fed’s continued focus on taming prices.

Source: Bloomberg