Powell reiterated the possibility of keeping interest rates high for a longer period of time

On May 14, Federal Reserve Chairperson Jerome Powell said that the Federal Reserve needs to be patient and wait for more evidence that high interest rates are suppressing inflation, thus doubling the need for interest rates to remain high for a longer period of time. Powell expects inflation to fall on a monthly basis, but the price data in Quarter 1 has dented his confidence. The lack of further progress on inflation in Quarter 1 in the United States is noteworthy. The Federal Reserve does not see fighting inflation as a smooth path, but the recent data has been higher than anyone expected. This tells people that they need to be patient and let restrictive policies work.