Chairman Jerome Powell said in an interview aired Sunday evening that the Federal Reserve remains on track to cut rates three times this year, a move expected to begin as early as May.
WASHINGTON — Chairman Jerome Powell said in an interview aired Sunday evening that the Federal Reserve remains on track to cut rates three times this year, a move expected to begin as early as May.
Powell also said in an interview recorded Thursday for the CBS news program “60 Minutes” that the country’s labor market and economy are strong, with no signs of a recession on the horizon.
“I think the economy is in a good place,” he said, “and there is every reason to think things can get better.”
Powell’s comments largely mirrored comments he made at a news conference on Wednesday after the Fed decided to keep its key interest rate steady at around 5.4%, a 22-year high. To combat inflation, the Fed has raised interest rates eleven times starting in March 2022, making loans much more expensive for consumers and businesses.
The Fed chairman also reiterated that the central bank’s next meeting in March was likely too early for a rate cut. Most economists think the first cut will likely come in May or June.
Nearly all 19 members of the Fed’s policy-setting committee agree that cuts to the central bank’s key interest rate will be appropriate this year, Powell said in the “60 Minutes” interview. A reduction in that rate would help lower the costs of mortgages, auto loans, credit cards and other consumer and business loans.
In December, Fed officials said they planned three rate cuts this year, bringing their benchmark rate down to about 4.6% by the end of the year. Powell told 60 Minutes that this forecast likely still reflected the views of policymakers.