Federal Reserve Chair Jerome Powell addressed the Senate Banking Committee Tuesday, stating that the U.S. Federal Reserve will not rush to cut its short-term interest rate, considering the U.S. economy is “strong overall.”
Speaking to lawmakers, Powell answered various questions about the Consumer Financial Protection Bureau (CFPB), tariffs and the Department of Government Efficiency, which is currently under Musk’s leadership.
“The economy is strong overall and has made significant progress toward our goals over the past two years,” Powell said, “We know that reducing policy restraint too fast or too much could hinder progress on inflation.”
In 2024, the U.S. economy grew by 2.5%, and in January, the Bureau of Labor Statistics reported that the unemployment rate had decreased to 4%. Given this strong economic performance, Powell believes there is no real need for a rate cut in the first half of 2025.
“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell said.
By CEO NA Editorial Staff
