I haven’t been truly surprised by anything that Powell has said until that line.
There’s a good argument for keeping rates high a bit too long and making sure the job is done right but he’s talking here about threading the needle and bringing rates down at just the right moment.
To me, that signals a strong willingness to cut once they get a few more low inflation prints. March pricing is now at 80% and I’ve thought that’s way too high in the past but this line changes that.
This article was written by Adam Button at www.forexlive.com. Source