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 was the peak inflation rate in June 2022?

What did Powell say about the timing of rate cuts?