Fed Chief Powell Stresses Need for Restrictive Policy to Tame Inflation

Powell said high interest rates may "take longer than expected" to lower inflation, and no rate hikes are likely.  He reiterated the Fed would need to be patient and let restrictive policy do its work to bring inflation down. Powell called the labor market "strong" and saw no concerns from softer April job gains. Futures markets had been betting on two rate cuts late in the year but Powell gave no hints of cuts. In March, the Fed's preferred inflation gauge rose to 2.7% annually, above the 2% goal.