Fed chair Powell says no hurry to lower interest rates

Federal Reserve Chairman Jerome Powell spoke to the House Financial Services Committee, stating that the central bank is not rushing to cut interest rates. He explained, "Right now, we’re in a good position to take our time and learn more about where the economy is heading before changing our policy." This echoes his comments from a recent press conference, emphasizing a cautious approach.

While some Federal Open Market Committee members, like Governors Chris Waller and Michelle Bowman, support rate cuts due to slowing inflation, Powell prefers to wait for more economic data. He’s particularly interested in how new tariffs might affect the economy, including growth and inflation. The Fed’s latest projections suggest two rate cuts by year-end, but opinions differ, with eight members expecting cuts and seven anticipating steady rates.

They also predict slightly higher inflation, lower growth, and a small rise in unemployment. Powell faces pressure, especially from President Trump, to lower rates quickly. However, with key events like the July Fed meeting and August’s Jackson Hole symposium approaching, Powell remains focused on gathering more information. He aims to balance economic growth with inflation control, ensuring decisions are based on solid evidence. For more insights on market trends, check out Yahoo Finance’s Morning Brief.