New Delhi, Feb. 12 -- US Federal Reserve Chair Jerome Powell reaffirmed the central bank's cautious stance on interest rates during his testimony before Congress on Tuesday, stating that inflation remains elevated while the job market remains strong.

After cutting rates by a full percentage point in late 2024, Powell indicated that the Fed does not feel pressured to make further adjustments in the near term. "With the economy remaining strong, we do not need to be in a hurry to adjust our policy stance," Powell said in prepared remarks to the Senate Banking Committee.

Market expectations for additional rate cuts in 2025 have waned. While Fed officials had projected two rate reductions this year, Wall Street analysts and investors are in...