Fed chairs Powell says that the central bank does not have to “rush” to reduce interest rates

Federal reserve chair Jerome Powell On Tuesday, the central bank brought down inflation and pointed politicians that do not rush to be less interest rates.

In the previous notes of the Senate Bank Commission, Powell called “strong” economy “strong” laboratory and the inflation that facilitates but still Fed on top of 2% goal.

With these previous conditions, the Fed should not move quickly to relieve money policy.

“With our policy attitude, it was a strong economy and we should not rush to adapt our political attitude,” Powell said. “We know that reducing politics is too fast or too much reduced can hinder inflation progress. At the same time, the reduction of politics can slowly weaken economic activity and employment.”

Powell’s comments entered The first two occurrences This week at Capitol Hill. He talks to the Senate Bank Commission on Tuesday, then the home financial services committee on Wednesday.

Stocks were briefly immersed After his opening statement, but little changes were changed after two hours.

A large part of the procedure was based on bank control than the monetary policy.

In the classification of the Massachesetts Elizabeth Warren Senada, President Donald Trump moved to stop the work of the consumer protection office.

Warren asked when Powell manages consumers’ consumers about CFPB, “I can’t say other federal regulators.” Powell, however, said the wider bank system is safe. He also has taken into account that Fedek “will determine the” determination “on the issues raised by Trump.

The audition also took several political rounds, with legislators

In monetary policy, Powell’s notes were largely due to its latest expressions and its colleagues, digesting the prosecutor and monetary dynamics that make it uncertain.

Noticeably, Lak He has launched an aggressive campaign Institute rates Against the largest US negotiation members, in a single sense, equalizing the economic area and enforces foreign policy objectives against illegal immigration and drug smuggling, specifically fentanyl.

Powell did not mention in the notes prepared, but it was expected to question rates and other issues related to members of the panel.

In an exchange, he again pointed to participation in Fed policy or responsibility for trade policy.

“I think it’s a standard free trade case and it still makes sense. He didn’t work well when we have a very large country that doesn’t act really plays,” Powell said. “Anyway, not to comment on Fed’s work policy.

Markets Final Post Fees will probably have rates, probably in the summer after cutting its reference loan level in a percentage point in 2024.

Powell said the current attitude of politics, the reference fund fund is 4.2.5% -4.5%, flexibility provides flexibility. Federal Open Market Commission had the rate in place At the end of January.

“We are aware of the dangers of our double authority, and the policy is well placed to deal with the risks and uncertainties we face,” he said.

Shortly after the office, Trump said “would ask” Interest rates go down “immediately”. However, in the following notes he said that the rate said he agreed with the decision to keep it in place Secretary of Finance said by Scott Bessent Administration is more based on seeing the 10-year-old Finance benefits than Fed’s actions.

Mortgage rates have been high as Fed cut, and Powell said he could change before.

“It’s true that mortgage rates have gone or has been high, but it’s not so directly related to Fed’s fee,” Powell said. “Long-term bond rates, especially treasure, 10-year treasure, 30-year treasure, are high, for example.

Powell said that mortgage rates could be downloaded as Fed keeps low rates, when it cannot be sure.