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The Federal Reserve will need to see more evidence of waning inflation before it will cut interest rates, Chair Jerome Powell said Wednesday, according to UPI.

What’s going on: “In prepared opening remarks [to the House Finance Committee], Powell said the Fed ‘does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.’”

• If the economy stays on its expected path, the Fed will likely “begin dialing back policy restraint”—though the outlook is uncertain, he added.

Good signs: The U.S. economy grew at a stronger pace in the past year, Powell told the House.

• Gross domestic product rose 3.1%, “boosted by solid consumer demand and improving supply conditions.”
• And while the labor market is still tight, supply and demand are coming “into better balance,” he continued.

Hinging on jobs: Friday’s jobs report will give a better idea of whether to expect rate cuts, according to the article.

• “A continuing hot jobs market would likely prompt the Fed to hold interest rates steady, while a significant weakening of the jobs market could lead to cuts.”