Fed holds out the prospect of further interest rate cuts: timing remains unclear. “Inflation has fallen significantly while the labor market has remained strong, and that is very good news,” said Fed Chairman Jerome Powell.
Inflation in prices in the USA had unexpectedly accelerated somewhat recently; the inflation rate was 3.2 percent in February - inflation is proving to be stubborn. The Fed's new inflation estimates show that this target is unlikely to be reached any time soon. The central bankers pay particular attention to this value because it reflects the general price trend better than the overall rate.