Powell says inflation is still too high and lower economic growth is likely needed to bring it down

cnbc.com:

Federal Reserve Chairman Jerome Powell acknowledged recent signs of cooling inflation, but said Thursday that the central bank would be «resolute» in its commitment to its 2% mandate.

In a widely anticipated speech delivered to the Economic Club of New York, Powell evaded committing to a specific policy path but gave no indication that he was leaning toward a push higher for interest rates.

As Powell spoke, futures market traders erased any possibility of a rate hike in November and decreased the chances of a move even in December. He acknowledged the progress made toward bringing inflation back down to a manageable level but stressed vigilance in pursuing the central bank's goals.

«Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,» Powell said in prepared remarks. «We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters.»

«While the path is likely to be bumpy and take some time, my colleagues and I are united in our commitment to bringing inflation down sustainably to 2 percent,» Powell added.

The speech comes with questions over where the Fed heads from here after a succession of interest rate hikes aimed at cooling inflation. Stocks turned higher after Powell spoke and the 10-year Treasury yield neared backed off its highs forthe session.

Powell said he doesn't think rates are too high now.

«Does it feel like policy is too tight right now? I would have to say no,» he said. Still, he noted that «higher interest rates are difficult for everybody.»

Powell noted the progress made toward the Fed's twin goals.

In recent days, data has