The president of the US Federal Reserve understands that the Central Bank should not “hurry” to modify interest rates.
The head of the Federal Reserve of the US (Fed), Jerome Powellhe replied on Tuesday to the president Donald Trump and gave new clues to the Financial Services Commission of the House of Representatives about when a Rate cutalthough he stressed that the Central Bank should not “hurry” to adjust interest rates.
Powell appeared before the commission, after recently the Republican called him “beast” and claimed him for a rates to be “at least 2 or 3 points below”, explaining that “if the inflationary pressures remain stable”, the types “earlier than later” will be cut.
However, Powell understands that the Fed must “wait and see” prior to any movement to “avoid a specific increase in price level” and generate a “constant” inflation problem.
“At the moment, we are well positioned to wait to learn more about the probable course of the economy before considering any adjustment in our political orientation,” he said during his biannual appearance.
Donald Trump’s tariff policy sows uncertainty in the economy
In that sense, he said that policy changes continue to evolve and that the consequences on the economy remain uncertain.
“The effects of duty They will depend, among other things, on their final level. The expectations of that level and, therefore, of the related economic effects, reached a maximum in April and since then they have decreased, “Powell said, although he acknowledged that another tariff increase is likely to impact prices and activity.
Powell also remarked that the labor market It is “in good shape”, but that an “important” weakening of employment would imply taking measures to adjust the price of money. “For now we are well positioned,” he slipped.
Source: Ambito
