Powell says Fed has new focus: When to cut rates

The Fed chair says in a rare TV appearance that officials "just want to gain a little more confidence" on inflation

- Nick Timiraos

Federal Reserve Chair Jerome Powell said the central bank has shifted its focus toward deciding when to begin cutting interest rates, but that solid economic growth means officials don’t have to rush that decision.

Given recent economic strength, “we feel like we can approach the question of when to begin to reduce interest rates carefully,” Powell said during a rare television interview broadcast on CBS on Sunday night.

Powell, speaking on "60 Minutes," said officials were trying to balance the risks of leaving rates too high for too long, which could cause an economic slowdown, and of cutting rates too soon and allowing inflation to settle above the Fed's 2% goal. The interview was taped Thursday from the Fed's Washington headquarters.

"There is no easy, simple, obvious path," Powell said. "We think the economy's in a good place. We think inflation is coming down. We just want to gain a little more confidence that it's coming down in a sustainable way."

The central bank held its benchmark federal funds rate steady last week in a range between 5.25% and 5.5%, the highest level in more than two decades.