Powell Says Too Soon to Judge War’s Impact as Inflation Keeps Fed on Hold

Federal Reserve Chair Jerome Powell made it clear the US central bank won’t cut interest rates again until inflation resumes cooling. And that’s before it even starts considering the possible impact of the war in the Middle East.

Powell, in a press conference Wednesday, underscored that it was still too soon to gauge the effects of a surge in oil prices on the US economy, even as financial markets have raced to price in higher expected inflation over the year ahead. Instead, he dwelled on signs, even prior to the outbreak of war, that price pressures were lingering longer than policymakers had hoped.