Fed still not ready to roll out a rate cut, Powell tells lawmakers

“The (Fed) has stated that we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2%,” Powell said in prepared testimony submitted to congressional lawmakers.

“The most recent inflation readings, however, have shown some modest further progress, and more good data would strengthen our confidence that inflation is moving sustainably toward 2%,” he added.

Powell is appearing Tuesday before the Senate Banking Committee to deliver his semiannual monetary policy report to Congress. He heads to the House Financial Services Committee on Wednesday to address the same report on the state of the US economy.