Federal Reserve Chairman Powell says central banks “don’t have to hurry” to further lower interest rates

Federal Reserve Chairperson Jerome Powell On Tuesday, it reiterated its commitment to defeating central bank inflation, signaling policymakers not rushing to lower interest rates.

Speaking before the Senate Banking Committee, Powell called the economy “strong overall” with “solid” Lab And still inflation is relaxed It exceeds the Fed’s 2% target.

With these conditions widespread, he said the Fed does not need to move quickly to ease monetary policy.

“Our policy stance is far less restrictive than ever and the economy remains stronger, so there’s no need to rush to adjust our policy stance,” Powell said. “I know that policy suppression too quickly or too much can hinder inflationary progress, while at the same time, slow or too little can lead to unfair weakening of economic activity and employment if policy suppression is slow or too little can lead to unfair reductions in economic activity and employment. It’s there.”

Powell’s comment The first of two appearances This week at Capitol Hill. He will speak to the Senate Banking Committee on Tuesday and to the House Financial Services Committee on Wednesday.

The stock was temporarily soaked Following his public statement, however, there was little change after two hours of trading.

Much of the procedure focused on bank oversight rather than monetary policy.

Massachusetts Sen. Elizabeth Warren’s ranking accused President Donald Trump of halting his work at the Consumer Financial Protection Agency of leaving consumers without guards at the country’s largest bank.

Warren asked Powell, who controls consumer compliance outside of the CFPB, and replied, “No other federal regulators can say it.” Nevertheless, Powell said the broader banking system is safe. He also said the Fed “is determined to “take a new look” on the issues raised by Trump regarding banking.

Powell’s remarks on monetary policy were largely in line with his recent statements and the statements of his colleagues who are digesting many of the financial and financial dynamics that create an uncertain environment.

Most notably, Trump An aggressive campaign has been launched Customs Laboratory It levelles the economic playing field for the US’s biggest trading partners, in a sense, and in another way implements diplomatic targets against illegal immigration and drug smuggling, particularly fentanyl.

Powell did not mention it in his prepared remarks, but was expected to face questions about tariffs and other issues from panel members.

In one exchange, he again stated that it is not the Fed’s policy or responsibility to be involved in trade policy.

“I think it still makes sense logically with the standard case for free trade. When there was one very large country that wasn’t actually playing in the rules, it didn’t work.” said Powell. “In any case, creating or commenting on tariff policies is not the Fed’s job… it’s for the elected people, not to comment. Policy so that we can accomplish our mission.”

The market interpreted the recent message as indicating that after cutting benchmark borrowing levels at full points in the second half of 2024, the Fed will likely be held up along with fees.

Powell said the current policy stance offers flexibility with a benchmark Fed fund ratio ranging from 4.25% to 4.5%. Federal Open Market Committee Rate was kept in place At a meeting in late January.

“We are paying attention to risks on both sides of our dual mission, and our policies are well positioned to address the risks and uncertainties we face,” he said. Ta.

Immediately after taking office, Trump said he would “demand” That interest rate will fall “quickly.” However, in subsequent remarks, he said he agreed to the decision to maintain the fees. Treasury Secretary Scott Bescent said The administration is focusing on seeing the Treasury yields fall below the Fed’s actions over the decade, which strongly affects the short-term rate.

Even if the Fed is cut, mortgage rates will be higher, and Powell said that it could change first.

“It’s true that mortgage rates are either high or remain high, but that doesn’t really have a direct connection to the Fed rate,” Powell said. “It really relates to the long-term bond rates, especially the Ministry of Finance, the Ministry of Finance, the Ministry of Finance, the Ministry of Finance, etc. These are high for reasons that are not particularly closely related to Fed policy.”

Powell said mortgage rates could drop as the Fed keeps rates low, but he said he is confident that this could happen when.