According to BlockBeats, in the second half of last year, despite strong spending and hiring, the rapid deceleration of price growth took officials by surprise, prompting them to shift their attention from how high to raise interest rates to how long it would take to cut them.
Nick Timiraos, a 'mouthpiece' for the Federal Reserve, reported this on July 9. The last time Jerome Powell, the Fed Chairman, appeared before Congress was in early March, where he hinted that the Fed might cut rates before June. However, a reversal in inflation derailed any such plans.
Powell stated today that recent inflation data 'shows some modest further progress, and more good data will boost our confidence that inflation is steadily moving towards 2%.' The violent fluctuations in inflation have put the Fed in an awkward wait-and-see situation. Policymakers must either wait for several months of convincing moderate inflation data or wait for evidence of a significant slowdown in employment and economic activity before cutting rates.