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Fed Chair Jerome Powell is seeking more evidence of declining inflation before considering interest rate cuts.

Federal Reserve Chair Jerome Powell wants more proof that inflation is falling before cutting interest rates. In comments before a House panel on Wednesday, Powell noted that U.S. prices are falling for both goods and services. He acknowledged that inflation has eased over the past year but remains above the Fed’s 2% annual target.

Powell highlighted the need to balance the risks of cutting rates too soon, which could reverse progress in reducing inflation, with cutting them too late or too little, which could weaken the economy and hiring. This cautious approach marks a shift from the Fed’s previous strategy of raising rates to combat high inflation.

Speculation about the timing of the Fed’s first rate cut is rife in the financial markets. Most analysts and investors anticipate a cut in June, with Fed officials projecting three rate cuts this year. Powell emphasized that the Fed is no longer raising rates and believes they are sufficiently high to restrain the economy and inflation.

Despite expectations for a rate cut, Powell did not provide any hints on timing. Wall Street traders are pricing in a 69% likelihood of a rate cut in June, slightly up from the previous week. Ian Shepherdson, chief economist with Pantheon Macroeconomics, characterized the situation as a “waiting game.”

President Biden’s administration is intensifying efforts to address public frustration with inflation, a key issue for the upcoming election. While overall inflation has cooled to 2.4% in January, recent economic data have complicated the outlook for rate cuts.

Some analysts view the stronger rise in core consumer prices in January as a temporary blip. Andrew Hunter of Capital Economics still expects a rate cut in June and believes rates could be lowered more quickly than currently anticipated by markets.

Powell’s testimony before the House Financial Services Committee coincides with these economic uncertainties. The Fed is closely monitoring inflation trends to determine the appropriate timing for rate cuts to support economic growth and stability.

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Facing Criticism for Shooting Dog, South Dakota Governor Noem Discusses ‘Difficult Choices’

South Dakota Governor Kristi Noem found herself in hot water recently after admitting to shooting her “untrainable” hunting dog. The controversial incident sparked public outrage, but it did not stop her from attending a gathering of California Republicans, where she received a warm reception on Saturday.

Noem, known for her stance on gun rights and conservative leadership, addressed more than 200 people at the California Republican Party convention in Burlingame. She emphasized the importance of patriotism and preserving American values amidst challenging times.

Although she did not directly reference the dog-shooting incident in her speech, she alluded to the controversy surrounding her decision to euthanize her dog named Cricket due to its poor hunting skills and an unfortunate incident involving farm chickens.

Attendees at the luncheon received a copy of Noem’s book, “No Going Back: The Truth on What’s Wrong With Politics and How We Move America Forward,” which she promoted during her remarks. Despite the backlash, she remained firm in her convictions.

South Dakota Gov. Kristi Noem speaks at the California Republican Party Spring Convention in Burlingame, Calif.

South Dakota Gov. Kristi Noem speaks at the California Republican Party Spring Convention on Saturday in Burlingame, Calif.

(Loren Elliot / For The Times)

Noem’s focus shifted to her leadership in South Dakota, particularly her handling of the COVID-19 pandemic and her decision to deploy the state’s National Guard to the U.S.-Mexico border. She raised concerns about drug cartels exploiting Native American tribal lands in her state and criticized the federal government for its inaction.

Despite the controversy surrounding her, Noem commended former President Trump for his authenticity and unwavering commitment to his beliefs. She highlighted Trump’s unconventional approach to politics as a sign of his genuine character.

State Republican Party delegate Anna Bryson expressed admiration for Noem’s financial policies and tax reduction efforts. She acknowledged the dog-shooting incident but credited Noem for her commitment to sound fiscal management.

South Dakota Gov. Kristi Noem speaks at the California Republican Party Spring Convention.

South Dakota Gov. Kristi Noem speaks at the California Republican Party Spring Convention on Saturday in Burlingame, Calif.

(Loren Elliot / For The Times)

The convention, attended by over 800 delegates and guests, marked a significant gathering for California Republicans. Despite past protests during Trump’s appearance in Burlingame in 2016, the event with Noem proceeded smoothly with no major disruptions.

Noem’s resilience amidst adversity and her unwavering commitment to her principles garnered both admiration and scrutiny at the California Republican Party convention.

Times staff writer Anabel Sosa contributed to this report.

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