Fed Chair Powell Says Central Bank does not ‘need to be in a hurry’ to lower interest rates further

Federal Reserve Chair Jerome power On tuesday reiterated the Central Bank’s Commitment to Bringing Inflation Down and Signaled that Policymakers are in a rush to push interested rates lower.

In Remarks Before The Senate Banking Committee, Powell Called The Economy “Strong Overall” with a “Solid” Labor Market And inflation that is easy but still Above the Fed’s 2% Goal,

With those conditions Prevailing, He said the fed the fed does not need to move quickly to ease monetary policy.

“With our policy stance now significantly Less Restrictive “We know that Reducing Policy Restraint! Ment. “

Powell’s comments came in the First of two appearances This week on capitol hill. He speakes to the senate banking committee on tuesday then the house financial services committee on wedding.

Stocks briefly dipped Following his opening statement but weighd after two hours of trading.

Much of the Proceeding focused on Bank Supervision Rather Than Monetary Policy.

Ranking Democratic Sen. Elizabeth Warren of Massachusetts charged that president donald trump’s move to halt the work of the consumer financial protection Bureau Left Consures with a Watchdogs of the Nation ‘

Warren asked Powell WHO is Administering Consumer Compliance Outside of the CFPB, to which he responded, “I can say no Other Federal regulator.” Powell nonetheles said the broader banking system is safe. He also noted that the fed is “determined to take a fresh look at” Issues that trump has raised Regarding de-banking.

The hearing also took a number of political turns, with lawmakers

On Monetary Policy, Powell’s Remarks WEREGELY In Keeping with his Recent Statements and Theose of his colleagues, who are digesting a number of fiscal and monetary dynamics that makes for an inveo.

Most Prominently, Trump have launched an aggressive campaign to institute tarifs Against the largest us trading partners, in one sense to level the economy playing field and in another to enforce Foreign Policy Goals Against Illegal Immigration and Drug Smugling, specialty

Powell did not mention any of that in his prepared remarks but was expected to face questions on tarifs and other issues from panel members.

In one exchange, he again noted that it is not the fed’s policy or responsibility to get involved in trade policy.

“I think the standard case for free trade and all that logically still makes senses. “In any case, it’s not the fed’s job to make or comment on tariff policy. Monetary policy so that we can achieve our mandate. “

Markets have interpreted the recent messaging as indications that the fed will be on hold with rates, probally into the summer, after cutting it benchmark boroving level by a full percent in the latter Parter Part

Powell said the current policy stance, with the benchmark fed funds rate in a range between 4.25%-4.5%, is providing flexibility. The Federal Open Market Committee hand the rate in place At Its Late-January Meeting.

“We are attentient to the risks to both sides of our dual mandate, and policy is well positioned to deal with the risks and uncertaintiies that we face,” he said.

Shortly after taking office, Trump said he would “demand” That interest rates come down “immediatily.” However, in subsequent remarks he said he agreed with the January decision to keep rates in place, why Treasury secretary scott bessent said The administration is more focused on seeing the 10-yar treasury yield move lower than on the fed’s actions, which more strongly influence short-term rates.

MortGage Rates have held high even as the fed has cut, and power said that count change ahead.

“It’s true that mortgage rates have gone or remained high, but that’s not so directly related to the fed’s rate,” Powell said. “It’s really related more to long-term bond rates, particularly the treasury, the 10-yar treasury, 30-year treasury, for example.

Powell Said MortGage Rates Cold Come down as the fed keeps rates low, thought heh’s unsure when thing thing thing.