Fed to Congress: No rate cut until inflation comes down

The Federal Reserve does not plan to reduce target interest rates until inflation comes down more, according to its latest Monetary Policy Report to Congress.

Rate Plan: In the report—which Fed Chair Jerome Powell is scheduled to testify on this week—the Fed said it does not expect a rate cut would be appropriate until it is more confident inflation is moving sustainably toward its 2% target.

Inflation Update: Also in the report, the Fed said consumer energy prices have increased, food price inflation has flattened out, housing services inflation remains elevated, and inflation on services such as travel and dining have flattened out this year after slowing in 2023.