Fed Chair Powell indicates no urgency for rate cuts

Federal Reserve Chair Jerome Powell reiterated that the Fed is not in a hurry to cut interest rates, emphasizing that the economy remains strong with low unemployment and inflation still above the 2% target. During his testimony before Congress, he stated that the Fed can maintain its current policy for an extended period if inflation does not continue to decline. However, he acknowledged that if the labor market weakens unexpectedly or if inflation falls more rapidly, the Fed could consider easing its policy. Powell's comments align with the views of other Fed officials and market expectations, which indicate that interest rates are likely to remain steady in upcoming meetings. He also noted that the Fed is closely monitoring economic risks stemming from the new administration's policies, including tariffs and regulatory changes. Powell's remarks underscore the delicate balance the Fed must maintain in navigating both inflation and employment goals amidst evolving economic conditions.