Powell says Americans forced to 'economize' as stubborn inflation squeezes household budgets

Federal Reserve Chair Jerome Powell said that policymakers are hearing that a significant segment of American consumers are still looking to "economize" their purchases and trading down as they feel the effects of stubborn inflation on their household budget.

Powell spoke at a press conference Wednesday after the central bank left interest rates unchanged in January following consecutive cuts of 25 basis points at the Federal Reserve's three meetings to end 2025.

The chairman was asked...