The Federal Reserve Chairman Powell says the central bank does not need to be in a hurry to “reduce interest rates more

Federal Reserve Chairman Jerome Powell On Tuesday, the Central Bank was committed to reduce inflation and indicated that policy makers are not in a hurry to pay interest rates to a decrease.

In notes before the Senate Banking Committee, Powell described the economy as “generally strong” with “solid” laboratory And inflation that relieves but still The goal of the Federal Reserve is 2 % 2 %.

With these prevailing conditions, he said that the federal reserve does not need to move quickly to relieve monetary policy.

“Through our political position now, much less restricted than it was, and the economy remains strong, we do not need to be in a hurry to control our position on politics,” said Powell. “We know that reducing policy control very quickly or more than necessary can hinder the progress of inflation. At the same time, reducing policy control very slowly or very few may weaken economic activity and employment.”

Powell’s comments came in The first appearances This week on the Capitol Hill. He speaks to the Senate Banking Committee on Tuesday and then the Financial Services Committee in the House of Representatives on Wednesday.

The stocks briefly decreased After his opening statement, it was changed slightly after two hours of trading.

He focused on many procedures on banking supervision instead of monetary policy.

Democratic Senator Elizabeth Warren accused Massachusetts of moving President Donald Trump to stop the work of the Consumer Financial Protection Office, leaving consumers without monitoring the largest banks in the country.

“I cannot say any other federal organizer,” he asked Warren Powell, who runs the consumer compliance outside the CFPB, which he answered. However, Powell said that the broader banking system is safe. He also pointed out that the Federal Reserve “is” determined to take a new look at “the issues that Trump has spoken regarding the disposal of the bank.

The session also took a number of political turns with legislators

Regarding the monetary policy, Powell’s statements were largely compatible with his recent statements and the data of his colleagues, who are charged with a number of financial and monetary dynamics that make an unconfirmed environment.

The most prominent, Trump I launched an aggressive campaign for Institute definitions Against the largest commercial partners in the United States, in the sense of settling the economic stadium and in another to enforce the targets of foreign policy against illegal immigration and drug trafficking, specifically fentanel.

Powell did not mention in his prepared statements, but he was expected to face an interrogation about the definitions and other issues of the committee members.

In one exchange, he once again indicated that it is not from the Federal Reserve Policy or the responsibility of participating in commercial policy.

“I think the standard free trade state and everything still logically logically. This did not work well when we have a very large country that does not play with rules,” said Powell. “In any case, it is not from the federal reserve mission or commenting on the policy of customs tariffs. This is for elected people and we do not have to hang. Monetary policy is so that we can achieve our mandate.”

The markets have interpreted the recent correspondence as indicating that the Federal Reserve will be suspended with prices, perhaps in the summer, after reducing the standard borrowing level by a full percentage in the last part of 2024.

Powell said that the current policy position, with the standard federal reserve funds in the range of 4.25 % -4.5 %, provides flexibility. Federal Open Market Committee Keep the applicable rate At her meeting in late January.

“We are living on the risks that both sides are exposed to our double mandate, and the policy is in a good position to deal with the risks and doubts we face,” he said.

Soon after assuming his position, Trump said he would “ask” The interest rates decrease “immediately”. However, in the subsequent observations he said that he agreed to the January decision to maintain prices in place Treasury Secretary Scott Bessin said The administration focuses more on the 10 -year treasury crop to a decrease in the actions of the Federal Reserve, which strongly affects the short -term rates.

The mortgage rates were designed high with the reduction of the Federal Reserve, and Powell said this might change forward.

Powell said: “It is true that the mortgage rates have gone or have been high, but this is not directly related to the Federal Reserve rate.” “It is truly associated with long -term bond rates, especially the treasury, the treasury for 10 years, the treasury for 30 years, for example. Those are high for reasons that are not closely related to the policy of the Federal Reserve.”

Powell said that the mortgage rates may decrease as the Federal Reserve keeps low rates, although it is not sure of this.