Federal Reserve chairman Jerome Powell noted on Tuesday that the Fed policymakers made quite a bit of progress on inflation but added that they need to be more confident before reducing policy rates.
According to the Fed's boss, the policymakers would like to see more data like they've been seeing recently. "We just want to understand that the levels we're seeing are a true reading on what's happening in underlying inflation," he stressed.
Powell also noted that the disinflation trend shows signs of resuming, while growth is still solid and the labour market remains strong.
In addition, the Fed's chief assured that the Fed's policymakers are well aware of the risk of cutting rates too soon and too late.