United States Federal Reserve Chair Jerome Powell said on Wednesday at a press conference that the path forward is "uncertain" as inflation is still "too high" and above the 2% goal. However, should the economy continue down the expected trajectory, the central bank will "dial back" its policy rate in 2024.
He noted that, at present, the policy rate is "well into the restrictive territory" and likely at its peak. Powell further reiterated that the Fed must see "continuing evidence" that inflation is moving toward the 2% goal before it starts loosening the monetary policy.
As the Fed is still fully committed to its objectives, Powell underlined that the current policy could also be maintained for longer if necessary.
