Fed Chair Jerome Powell Says Rate Cuts Depend on Further Inflation Progress
Jerome Powell signaled the Federal Reserve will hold off on rate cuts until inflation declines more substantially, as Treasury yields rose and market expectations shifted on March 19.
Fact Check
The statement accurately reflects the consensus of major financial news outlets reporting on Jerome Powell's remarks and the Federal Reserve's policy stance on March 18, 2026. Multiple sources (NYT, Fox Baltimore, Yahoo Finance) confirm that the Fed meeting concluded that day with a message that rate cuts depend on continued inflation progress and that the pace of easing has been slower than anticipated.
Summary
Federal Reserve Chair Jerome Powell said the central bank will not cut interest rates until inflation shows significantly more progress. On March 19, that stance coincided with a sharp cooling in rate-cut expectations, while higher oil prices linked to Middle East conflict added inflation concerns. U.S. Treasury yields moved higher, with the 2-year yield at about 3.78% and the 10-year yield at 4.27%, reflecting the market’s reassessment of the likely timing of monetary easing.
Terms & Concepts
- Federal Reserve: The central bank of the United States, responsible for setting monetary policy and influencing interest rates.
- Rate cuts: Reductions in benchmark interest rates, typically used by central banks to support borrowing, spending, and economic activity.