Investing.com -- Federal Reserve chairman Jerome Powell said Wednesday most voting Fed participants support lowering interest rates at some point this year, but not until the central bank has greater confidence from incoming data that inflation is on a sustainable move lower.
"If the economy evolves broadly as we expect, most FOMC participants see it as likely to be appropriate to begin lowering the policy rate at some point this year," Powell said in opening remarks ahead of a question-and-answer session at Stanford University.
But a pivot to cuts isn't expected to arrive until "we have greater confidence that inflation is moving sustainably down toward 2 percent," the fed chief said, adding that the Fed has the luxury of waiting because of the strength in the economy and progress on inflation.
The recent data showing that the economy remains solid and inflation surprised to the upside since the turn of the year, muddying the outlook on rate cuts forcing investors to rein in expectations of rate cuts.
But Powell said that the recent data haven't materially changed the Fed's outlook, which continues "to be one of solid growth, a strong but rebalancing labor market, and inflation moving down toward 2 percent on a sometimes bumpy path."
Powell continued to flag the risk for the future monetary policy decision remain two-sided risks -- cutting rates too early, risks undoing the progress on inflation, but keeping rates higher for longer could unduly "weaken economic activity and employment."
Treasury yields dipped following the remarks, dragging the US Dollar Index Futures lower.