U.S. Federal Reserve Chair Jerome Powell reiterated the central bank’s stance on maintaining interest rates during a congressional panel meeting. Despite pressure from the White House, the Fed decided to keep its key interest rate unchanged for the fourth consecutive meeting. Powell emphasized that the Fed will assess the economic impact of recent tariffs before considering rate cuts.
Inflation remains above the Fed’s 2% target, and Powell warned that tariffs could increase consumer prices and hinder economic activity. He noted uncertainty over whether tariff effects would result in a one-time price shift or prolonged inflation. The Fed’s interest rates remain between 4.25% and 4.5%, as unanimously decided by the Federal Open Market Committee.
Powell stressed the importance of balancing low inflation with full employment, stating that price stability is essential for sustained labor market health. The committee plans to evaluate further data on how tariffs will affect the economy before altering its policy. Economists predict a potential rate cut in September, contingent on stable inflationary data.
— News Original —
Powell repeats Fed’s intent to weigh economic data before cuts
June 24 (UPI) — U.S. Federal Reserve Chair Jerome Powell on Tuesday echoed recent economic sentiments to a congressional panel following the central bank’s decision to maintain its key interest rate for the fourth straight meeting despite public pressure from the White House.
— news from upi.com