Jerome Powell says Fed won’t wait for inflation to hit target to cut rates

The Federal Reserve will not wait until inflation hits the 2% target to cut rates, Fed Chair Jerome Powell said at the Economic Club of Washington, DC. Instead, the central bank wants “greater confidence” that inflation will return to that level.

He also said a “hard landing” for the economy was an unlikely scenario.

Powell made the statement yesterday, which was his first public event since the CPI report for June showed cooling inflation. He didn’t mention when rate cuts can be expected.