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Powell indicates Fed wonβt wait until inflation is down to 2% before cutting rates.
Powell referenced the idea that central bank policy works with βlong and variable lagsβ to explain why the Fed wouldnβt wait for its target to be hit.
The central bank is looking for βgreater confidenceβ that inflation will return to the 2% level, Powell said.The Fedβs next policy meeting is at the end of July.
The federal funds rate influences, directly or indirectly, the cost of money throughout the economy, such as mortgage rates.
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