Fed Chair Powell Rules Out Immediate Rate Cuts Amid Inflation Concerns

Federal Reserve Chair Jerome Powell indicated that the central bank is not in a hurry to cut interest rates further, despite ongoing high inflation. He emphasized that fiscal policy is already less restrictive and warned that further adjustments could hinder the fight against inflation, though other economic indicators remain positive. Senators, including Elizabeth Warren, urged Powell to consider quicker rate cuts, expressing concerns that current rates are too high and detrimental to the economy. Powell is expected to face scrutiny from lawmakers regarding the Fed's interest rate strategy amid uncertainty surrounding President Trump's economic policies, particularly tariffs and immigration measures. While the Fed has cut rates three times recently, it is likely to maintain a cautious approach moving forward, potentially resulting in elevated mortgage rates and borrowing costs for consumers. Overall, the Fed aims to balance economic stability and inflation control, with expectations of limited rate cuts in the near future.