Fed's Powell: Strong economy means no hurry to cut rates | Reuters

WASHINGTON, Feb 11 (Reuters) - The U.S. Federal Reserve is in no rush to cut its short-term interest rate again given an economy that is "strong overall," with low unemployment and inflation that remains above the Fed's 2% target, Fed Chair Jerome Powell said in opening remarks prepared for delivery at a Senate Banking Committee hearing.

"The economy is strong overall and has made significant progress toward our goals over the past two years," Powell said, with a 4% jobless rate considered around the level of full employment, and inflation lower though still more than half a percentage point above the Fed's target

[...] For now, investors have read recent data, and in particular the January employment report showing the jobless rate falling to 4% and a strong pace of wage increases, as arguing for fewer Fed rate cuts this year. Markets still anticipate a quarter point reduction in the central bank's policy rate in June, but have begun pricing out any other moves this year.

The Fed at its January meeting held the policy rate steady in the 4.25% to 4.5% range after cutting a full percentage point in the last three meetings of 2024.