US Federal Reserve Chair Jerome Powell appeared for a rare interview on the CBS News show 60 Minutes on Sunday night.

During the interview, Powell provided insight into the Fed’s strategy for addressing inflation and gave some hints as to when the central bank will finally cut rates.

The interview was recorded Thursday, the day after the after the Fed announced it would keep its key interest rate at a 22-year high of 5.4%. The Fed has raised its benchmark rate numerous times since 2022 to combat high inflation, which has since subsided to levels close to the central bank’s target.

The Fed has since suggested it would cut rates once annual inflation hits 2%. In December, the US Bureau of Labor Statistics reported that annual inflation was at 3.4%.

The Fed’s next meeting is March 19 to 20.

Hear are key quotes from Powell’s interview with 60 Minutes.

Why not cuts rate now?

“With the economy strong like that we we feel like we can approach the question of when to begin to reduce interest rates carefully,” Powell said. “And we you know, we want to see more evidence that inflation is moving sustainably down to 2%. We have some confidence in that our confidence is rising. We just want some more confidence before we take that very important step of beginning to to cut interest rates”

Why target 2% inflation

“Interest rates will always include an estimate of future inflation. If that estimate is 2%,” Powell said. “That means you’ll have 2% more that you can cut in interest rates, the central bank will have more ammunition more power to fight a downturn. If rates are a little bit higher.”

No interest rate cuts likely in March

“I think it’s not likely that this committee will reach that level of confidence in time for the March meeting, which is in seven weeks,” Powell said.