Federal Reserve Chair Jerome Powell told the Senate Banking Committee that the central bank is not in a hurry to lower interest rates despite pressure from the White House. Powell emphasized that inflation remains above the Fed's 2% target and the economy is in a good position despite the impact of elevated rates.
Fed eral Reserve Chair Jerome Powell speaks to the Senate Banking Committee, Tuesday, Feb. 11, 2025, on Capitol Hill in Washington.
The economy is in overall good standing despite nagging inflation, with unemployment remaining near historical lows, jobs readily available and continued economic growth despite the weight elevated rates have on investment. Powell and other governors have said the Fed will be cautious with lowering rates in 2025 and react to the data.
The Fed may keep its rates higher for longer if inflation does not continue to move downward and the economy remains strong, though Powell said the Fed is equally concerned about maintaining the maximum employment side of its dual mandate. Powell has avoided speaking directly about Trump’s push to cut rates or commenting on the administration’s economic policies, instead positioning the Fed as being responsive to government policy.
Republicans frequently pressed Powell on how the Fed’s banking regulators plan to tackle a growing issue with alleged “debanking,” when crypto firms and people are denied or lose access to banks over supposed financial, legal or reputational risks. The Fed chair said he and other officials were concerned at the growing quantity of reports on the issue.
Finance FED INTEREST RATES INFLATION ECONOMIC POLICY POWELL
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Powell Reiterates Fed in No Rush to Cut Rates, Inflation Still a ConcernFederal Reserve Chair Jerome Powell addressed the Senate Banking Committee, emphasizing the Fed's cautious approach to lowering interest rates. Inflation remains above the 2% target, and the Fed is monitoring economic data closely before making decisions. Powell stated that the Fed will adjust its policy stance as the economy evolves, but there is no need to rush into rate cuts.
Read more »
Fed Holds Rates Steady, Powell Reiterates Data-Dependent StanceThe Federal Reserve (Fed) kept interest rates unchanged as widely anticipated by markets. Fed Chair Jerome Powell emphasized the Fed's data-driven approach to future rate adjustments. EUR/USD experienced increased volatility but limited daily price movement.
Read more »
Powell Reiterates Fed's Commitment to Inflation Control, Signals Patience on Rate CutsFederal Reserve Chair Jerome Powell emphasized the central bank's dedication to taming inflation during his testimony before the House Financial Services Committee, while suggesting no immediate rush to lower interest rates. He stressed that the current economic conditions do not warrant a hasty easing of monetary policy and that a measured approach is necessary to avoid hindering inflation progress or unduly weakening economic activity.
Read more »
Fed's Powell Signals No Rush to Cut Rates as Inflation PersistsFederal Reserve Chair Jerome Powell testified before the Senate Banking Committee on Tuesday, emphasizing that the central bank is not in a hurry to lower interest rates despite pressure from the White House. Powell reiterated the Fed's commitment to controlling inflation, which remains above its 2% target. The Fed is carefully monitoring economic data and the evolving outlook, assuring lawmakers that it will adjust its policy stance as needed to achieve its goals of maximum employment and stable prices.
Read more »
Facing unknowns on taxes, tariffs and inflation, Powell sees no rush to cut ratesFederal Reserve chair Jerome Powell reiterated the central bank is in no rush to cut interest rates with inflation still lingering and a string economy.
Read more »
Wall Street's Biggest Calls on WednesdayLoop initiates Viking Holdings as buy, Bank of America reiterates Alphabet as buy, Wells Fargo reiterates Advanced Micro Devices as overweight, downgrades Snap to equal weight and American Eagle to equal weight, Barclays downgrades Ferrari to equal weight, Piper Sandler upgrades Simon Property to overweight, Jefferies upgrades Mattel to buy, JPMorgan upgrades Janus Henderson to overweight, Piper Sandler initiates Opera as overweight, Rosenblatt downgrades Spotify to neutral, Stifel upgrades Hayward to buy, Citi downgrades Warby Parker to sell and upgrades Molson Coors to neutral, JPMorgan reiterates Nvidia as overweight, reiterates Apple as overweight, UBS reiterates Chipotle as buy.
Read more »