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Donate. Interest rates are going to come down this year, just not now.

From Marketplace, I'm Sabrie Beneshore in for David Brancaccio.

The Federal Reserve left interest rates unchanged at its meeting this week, pretty much what everyone expected.

Although it is still penciling in three rate cuts this year,

at yesterday's press conference Fed Chair Jerome Powell emphasized that what the Fed does next depends on the data, especially on inflation.

Marketplace's Nancy Marshall Genser was at the press conference and joins us now live.

Morning, Nancy.

Good morning, Sabrie. So inflation came in

higher than expected in January and again in February. Is that why the Fed is

holding interest rates where they are? Yes and remember Sabry the Fed has been raising rates to dampen demand.

The theory is lower demand pushes down prices.

Chair Powell said the Fed isn't going to cut interest rates until it's absolutely sure inflation is

headed toward its 2% goal.

So what kind of data does the Fed need to see before it actually goes and lowers rates.

That's what we kept asking Chirapale yesterday.

Of course he's watching overall inflation data,

but he's also keeping tabs specifically on housing inflation, which isn't coming down the way the

Fed expected, rising wages can fuel demand and inflation.

Powell told me he's keeping an eye on that, although he doesn't think higher wages were a major cause of inflation.

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