The Latest Breaking News from Jay Powell

Consumer price inflation reared its ugly head to start the year, dashing hopes for the Fed to lower borrowing costs anytime soon.

As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.

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The Fed fund forward curve is showing an expected 25-basis point cut by the FOMC Thursday afternoon. Things get a bit cloudier after that, though.

The March Fed meeting is finally here, with Wall Street anxious to see what Jerome Powell & Co. have to say on inflation and interest rates.

"They were late raising rates but they raised very high, rapidly, to 5% which I think is the right thing," JP Morgan's Jamie Dimon said. "And they're right to take the foot off the gas on that one."

In a widely anticipated move, the Federal Reserve announced on Sept. 18, 2024, that it was cutting its benchmark interest rate by half a percentage point to a range of 4.75% to 5% – the first time the cost of borrowing has been lowered in four years.

The debate about the upcoming Fed meeting centers around whether it will cut the funds rate by 25 or 50 basis points. But that may not be enough.

"Overall inflation data has been good enough to allow the Fed to start cutting rates this week amid a softening labor market, but do not give officials a reason to cut aggressively."