Powell: Rate Cut on Hold Until Inflation, Jobs Show Progress

Powell: Rate Cut Should Only Be Considered in Case of Inflation Resistance or Weak Employment Federal Reserve Chair Jerome Powell recently stated that the Fed will not take action until seeing more progress than is currently evident. This indicates that the Fed is not planning to cut interest rates in the near future. Powell also mentioned that the Fed is waiting for data confirmation before making any decisions, suggesting that the Fed is being cautious and data-driven in its approach to monetary policy. In addition, Powell emphasized that the Fed wants to see if inflation continues to decline to the Fed's target level in the coming months before easing monetary policy again. This suggests that the Fed is focused on controlling inflation and is not in a hurry to cut rates. Powell also expressed uncertainty about the impact of Trump's plans on price pressures, the labor market, and economic growth, indicating that the Fed is considering the potential effects of political changes on the economy. Overall, Powell's comments suggest that the Fed is taking a wait-and-see approach to monetary policy, focusing on data-driven decision-making and being cautious about cutting interest rates. The Fed is likely to continue monitoring economic indicators and inflation trends before making any significant changes to monetary policy.