There is no rush to cut interest rates

US Federal Reserve Chairman Jerome Powell confirmed in a speech on Friday that the bank was in no rush to start cutting interest rates.

Bloomberg quoted Powell as saying at an event at the bank's San Francisco branch: “We're in no rush to cut.” He added, “The new inflation data released earlier is largely in line with our expectations.”

Powell stressed that it is not appropriate to cut interest rates until officials believe that inflation is on track to reach the 2% target.

“It's good to see something in line with expectations,” the Fed chief said, adding that the latest readings were not as good as what policymakers saw last year.

Government data released on Friday showed the central bank's preferred measure of core inflation fell last month after a larger increase in January.

The core personal consumption expenditures price index – excluding volatile food and energy costs – rose 0.3% in February, up from 0.5% in the previous month, marking its biggest rise in consecutive gains in a year.

Powell said officials expect inflation to continue to ease, but he struggled to confirm comments he made after the Federal Reserve's latest monetary policy committee meeting earlier this month. (Sky News)

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