Powell may provide hints of whether Federal Reserve is edging close to rate cuts WHIO TV 7 and WHIO Radio [Video]

WASHINGTON — (AP) — 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 re-election 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 inflationalso came in surprisingly high — a possible sign of inflation pressures in the pipeline that could cause consumer price increases to …