Federal Reserve's Steady Approach Amidst Trump's Policy Changes

Federal Reserve Chair Jerome Powell emphasized a cautious approach to interest rate changes amidst the uncertainties of the Trump administration's new policies. Despite solid job growth, potential slowdowns in consumer spending and heightened economic uncertainty prompt a wait-and-see stance. Market volatility and inflation expectations factor into decisions.

Federal Reserve Chair Jerome Powell has adopted a cautious stance regarding interest rate adjustments due to the ambiguity surrounding President Trump's new policies. Speaking at an economic forum in New York, Powell highlighted the administration's significant shifts in trade, immigration, fiscal policy, and regulation, which have introduced high levels of uncertainty.

Amid volatile economic conditions, marked by Trump's abrupt tariff announcements and subsequent delays, Powell assured that the central bank is not in a rush to alter rates. Although the U.S. economy demonstrates continued job gains and stable growth, potential slowdowns in consumer spending require careful monitoring.

As the Federal Reserve prepares for its March policy meeting, Powell acknowledged higher short-term inflation expectations but maintained confidence in current policies. With expectations of future economic slowdowns, market observers anticipate possible rate cuts by year's end.

(With inputs from agencies.)