Powell indicated that the Fed won't wait until inflation is down to 2 before cutting interest rates, citing that central bank policy has "long and variable lags" on the economy. The Fed is looking for "greater confidence" that inflation will return to its 2 target, rather than waiting for it to get down to that level fully. Powell referenced recent "good inflation data" as increasing confidence inflation will moderate to 2. He said a "hard landing" for the US economy, where rates rise too much and cause a recession, is not a "likely scenario." Powell aims to signal the Fed won't tighten too much and potentially overshoot on lowering inflation. The next Fed policy meeting is at the end of July.