Jerome Powell: The Federal Reserve Is Not in a Hurry to Adjust Interest Rates Amid Economic Uncertainty
Federal Reserve Chairman Jerome Powell confirmed that the central bank does not need to rush into adjusting interest rates due to the uncertainty caused by the economic policies of President Donald Trump and their potential impacts. Powell stated during a forum in New York: “These policy changes will affect the economy and the trajectory of monetary policy, so there is no need to hurry. We are in a good position that allows us to wait for more clarity.”
Powell’s comments come at a time when Trump’s return to the White House in January has led to rapid changes expected to impact the world’s largest economy. Among the key shifts, Trump imposed a 25% tariff on neighboring countries Mexico and Canada, justifying it with issues like illegal immigration and fentanyl smuggling. He also imposed tariffs on China, reaching up to 20%.
Trump also indicated today that tariffs on the neighboring countries may be raised further. These tariffs have caused a decline in U.S. markets, and economists have warned that if these tariffs persist, they could burden long-term economic growth and push inflation higher.
However, Powell reassured that the U.S. economy is still in good shape, continuing to grow at a strong pace. He emphasized that the Federal Reserve is focused on distinguishing between signal and noise when assessing the impact of policies.
Sources:
- Jerome Powell’s statements at the New York Forum.
- Economic reports and expert analyses regarding the impact of tariffs in the United States.