Powell’s Inflation Focus Means Big Pause on Rate Hikes

(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Pocket Cast or iTunes.

Unless there’s a marked move higher in inflation, don’t bet on a rate increase any time soon. Federal Reserve Chairman Jerome Powell said on Wednesday “we would need to see a really significant move up in inflation that’s persistent before we would consider raising rates to address inflation concerns.” The Fed’s preferred measure of underlying U.S. inflation -- which excludes food and energy -- has climbed this year but remains well below the central bank’s 2% target.

©2019 Bloomberg L.P.