Fed Chairman Jerome Powell testified on March 6, 2024 before the House Financial Services Committee in Washington, D.C.
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Fed Chairman Jerome Powell On Tuesday, central banks were committed to their commitment to lower inflation and showed policymakers are not in a hurry to push interest rates higher.
In a speech on the Senate Banking Committee, Powell called the economy a “strong whole” laboratory and inflation is easing, but still Above the Fed’s 2% target.
Because these conditions prevail, he said the Fed does not need to act quickly to ease monetary policy.
“Now, because our policy stance is much less than previous restrictions and the economy remains strong, we don’t have to rush to adjust our policy stance,” Powell said. “We know that reducing policy restrictions too quickly or too much will hinder the stockpile,” he said. “We know that reducing the policy stipulations too quickly or too much will hinder the stockpile.” Inflated progress. At the same time, reducing policy restrictions too slowly or too little can over-destroy economic activity and employment.”
Powell’s comment appears in The first of two performances This week on Capitol Hill. He spoke with the Senate Banking Committee on Tuesday, and then on Wednesday the House Financial Services Committee.
These remarks are largely consistent with Powell’s recent statements and those of his colleagues, who are digesting many of the fiscal and monetary dynamics that make the environment uncertain.
The most prominent president Donald Trump An active campaign has been launched Institute tariffs In a sense, oppose the United States’ largest trading partner to improve the economic competition environment, and in another sense, to implement foreign policy objectives against illegal immigration and drug smuggling (particularly fentanyl).
Powell did not mention any of this in his speech, but was expected to face questions about tariffs and other issues from the panelists.
The market has interpreted the recent news as suggesting that the Fed will lower its benchmark borrowing levels by one all percentage point late in 2024, which could continue into the summer.
Powell said the current policy stance is to provide flexibility in the benchmark feed fund rate between 4.25% and 4.5%. Federal Open Market Commission Hold exchange rate At the meeting in late January.
“We focus on both sides of the risk of dual tasks and policies are the benefits of dealing with the risks and uncertainties we face,” he said.
Shortly after work Trump says he will “request” Interest rates fell “immediately.” However, in subsequent comments, he said he agreed to the decision to retain interest rates, and Finance Minister Scott Bessent said The government is more focused on seeing 10-year treasury yields move below the Fed’s action, which will have a stronger impact on shorter deadlines.
