Powell repeats his careful Fed rate stance with US lawmakers
Federal Reserve Chairman Jerome Powell told lawmakers Tuesday that the Fed is not in a hurry to adjust interest rates. Careful stance Central bank policymakers digest the signs of stubborn inflation; Policy uncertainty From the new Trump administration.
“Our policy stance is significantly less restrictive than ever and the economy remains strong, so there is no need to rush to adjust policy stance,” Powell said on Tuesday. He stated in his testimony prepared before the meeting.
Powell this week is open to Capitol Hill every six months and faces lawmakers who provide the basis for the Fed’s longstanding independence from the administrative sector. He testifies before the House Financial Services Committee on Wednesday.
Powell has many questions that could range from monetary policy and the impact of Donald Trump’s tariffs to the future of bank capital requirements, including the large lender’s actions to “debank” certain customers. It is expected to be faced with.
The central bank had been stable in the 4.25%-4.5% range at its last policy meeting on January 29, after cutting the rate of reductions at three consecutive meetings at the end of 2024. This year we will assess the path of inflation and the impact of Trump’s economic policies.
The president has given Powell and the Fed so far. Some breathing chambers. After initially chitting the central bank on inflation, Trump said of the January 29 decision, “I think it’s the right thing to do at this point.”
read more: Fed rate decision: how will it affect your bank account, loan, credit card and investment?
Trump’s Treasury Secretary Scott Bescent offered more guarantees last week when Trump said he hadn’t asked the Fed to lower short-term fees, and instead targeted 10-year Treasury yields to make it even longer It focuses on reducing borrowing costs. bond.
Not everyone is spending Trump’s trajectory quietly about the Fed. Billionaire Elon Musk Suggested in a series of social media posts This past weekend, the Fed should undergo more thorough scrutiny.
“All aspects of the government must be completely transparent and responsible for the people, with no exceptions, particularly including the Federal Reserve,” he said, adding that other parts of Washington are the director of government’s efficiency department. Rowing as a musk (Doge).
Masks previously stated that the Fed saidAbsurdly excessive personnel. ”
Asked about these comments at a January press conference, Powell said, “As you know, we’re doing a very careful budgeting process. We know, we borrow it.” We fully recognize that we are. We do that.”