Federal Reserve chairman Jerome Powell confirmed Tuesday that policymakers will pump the brakes on cutting interest rates following the March inflation report, among other inflation indicators.

The recent data have clearly not given us greater confidence and instead indicate that it is likely to take longer than expected to achieve that confidence,” Powell said at a Q&A session in Washington, DC.

The Federal Reserve is changing its forecast after inflation has risen for the third month in a row. This interrupts previous hopes that it would be able to cut them by the summer. Fed officials had been optimistic about he prospect based on inflation predictions.

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The S&P 500 experienced a slight decline after Powell’s speaking event with investors selling Treasurys, causing yields to go up. The 2-year Treasury note yield reached 5 percent for the first time since November.

“We think policy is well positioned to handle the risks that we face,” Powell said. “Right now, given the strength of the labor market and progress on inflation so far, it’s appropriate to allow restrictive policy further time to work.”

Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.

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