Federal Reserve Chair Jerome Powell on Tuesday reiterated the central bank’s commitment to bringing inflation down and signaled that policymakers aren’t in a rush to push interest rates lower. In remarks before the Senate Banking Committee, Powell called the economy “strong overall” with a “solid” labor market and inflation that is easing but still above the Fed’s 2% goal. With those conditions prevailing, he said the Fed doesn’t need to move quickly to ease monetary policy. “With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell said. “We know that reducing policy restraint too fast or too much could hinder progress on inflation. At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment.” Powell’s comments came in the first of two appearances this week on Capitol Hill. He speaks to the Senate Banking Committee on Tuesday then the House Financial Services Committee on Wednesday.
The US central bank is in no rush to slash interest rates any time soon, Federal Reserve Chair Jerome Powell told lawmakers Tuesday. “With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell said in prepared remarks.
All three major stock indexes were down and Treasury yields edged higher on Tuesday morning as investors awaited Federal Reserve Chair Jerome Powell's testimony before Congress. Thierry Wizman, global FX and rates strategist at Macquarie, noted concerns that Powell's remarks might be influenced by the U.S. administration's policies, particularly regarding tariffs, immigration, and taxes. Investors are closely watching for any comments from Powell on inflation risks and the impact of President Trump's policies on interest rates.
