Powell: Federal Reserve is still on track to cut rates despite signs of persistent inflation

Federal Reserve officials will likely reduce their benchmark interest rate later this year, Chair Jerome Powell said Wednesday, despite recent reports showing that the U.S. economy is still strong and that U.S. inflation picked up in January and February. “The recent data do not … materially change the overall picture,” Powell said in a speech at Stanford University, “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.” Most Fed officials “see it as likely to be appropriate” to start cutting their benchmark rate “at some point this year," he added.