In his recent interview with “60 Minutes” after last week’s Federal Open Market Committee Meeting, Federal Reserve Chair Jerome Powell vowed that the central bank will move forward with interest rate cuts this year, but likely at a considerably lower pace than the market expects. He emphasized the need for more evidence of sustainable inflation reduction to 2% before considering rate cuts. Despite market anticipation, Powell suggested that the Fed might not act in March, highlighting the discrepancy between the market expectations of five cuts and the Fed’s projection of three. While he remained optimistic about the economy, the biggest risk, according to Powell, is likely from geopolitical events.
Powell insists the Fed will move carefully on rate cuts, with probably fewer than the market expects
