Powell may hint whether Federal Reserve is edging close to rate cuts [Video]

Two weeks ago, Chair Jerome Powell suggested that the Federal Reserve was “not far” from gaining the confidence it needed that inflation was headed sustainably toward its 2% target level, which would allow it to start cutting its benchmark interest rate.

It was a tantalizing suggestion, because a cut in the Fed’s key rate has typically boosted the economy by reducing the cost of lending, from mortgages to business loans. It might also benefit President Joe Biden’s reelection bid, which is facing widespread public unhappiness over price levels across the economy.

Since then, though, the latest inflation measures have turned out to be hotter than expected: A government report showed that consumer prices jumped from January to February by much more than is consistent with the Fed’s target. A second report showed that wholesale inflation also came in surprisingly high — a possible sign of inflation pressures in the pipeline …