What do Powell's comments on rate cuts mean for Americans?

Federal Reserve Chair Jerome Powell informed Congress that interest rates will not be cut until the economy shows more strength. Inflation is nearing the Fed's 2% target, currently at 2.4%, down from a peak of 7.1% in June 2022. Interest rates have peaked at 5.4%, a 23-year high. Although the Fed projected three rate cuts this year, Powell did not specify when they would occur. Wealth management advisor Adam Phillips noted the delicate balance in timing rate cuts, as the Fed has raised rates 11 times since 2022. Despite slowing inflation, rate cuts may not lower prices. Powell acknowledged that pre-pandemic economic conditions might not return. The Fed will consider wages, jobs, and the bond market before deciding on rate cuts. Powell's testimony continues, with confidence in the Fed's ability to manage inflation.

What is the current status of the Federal Reserve's interest rate policy?

• They are ready to cut rates immediately.

• They are waiting for more economic strength before cutting rates.

• They have already cut rates significantly.

• They plan to increase rates further.

What is the current inflation rate compared to the Fed's target?

• It is above 7%.

• It is exactly at 2%.

• It is slightly above the target at 2.4%.

• It is below the target at 1.5%.

How many rate cuts have Fed officials projected for this year?

• Two

• One

• Four

• Three

What does Adam Phillips say about the impact of interest rate cuts on prices?

• They might not lead to lower prices.

• They will increase prices.

• They will definitely lower prices.

• They will have no effect on prices.

What factors will the Fed consider before deciding on rate cuts?

• Global economic conditions

• Stock market performance

• Wages, jobs, and the bond market

• Only inflation rates