Powell Maintains Steady Course Amidst Uncertain Economic Winds

Federal Reserve Chair Jerome Powell emphasized that due to ongoing economic growth and a strong job market, the central bank does not need to rush lowering interest rates. He highlighted that inflation is still on a path towards the 2% target. Amidst economic uncertainties under the upcoming Trump administration, Powell advocated for deliberation in monetary policy decisions.

Federal Reserve Chair Jerome Powell has urged caution in changing interest rates, citing persistent economic growth and a solid job market as reasons for maintaining a steady course. Addressing an event in Dallas, Powell underscored that inflation is gradually aligning with the 2% target, suggesting the Federal Reserve should not hasten to cut rates.

Powell's remarks come as financial markets anticipate fewer rate cuts next year than originally expected. This prudent approach is fueled by the strength of the current economy and uncertainties surrounding President-elect Donald Trump's economic agenda, including potential tax cuts, tariffs, and immigration policies.

During a Q&A, Powell emphasized the unknown impact of Trump's proposals until they are implemented. Despite strong economic indicators, such as a low unemployment rate and healthy consumer spending, Powell noted that inflation measures remain slightly above desired targets and warrant careful monitoring by the central bank.

(With inputs from agencies.)