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Federal Reserve Chair Jerome Powell had plenty of opportunities Tuesday to tell lawmakers definitively the central bank will cut interest rates soon. He didn’t take any of them.
Instead, Powell reiterated his view that policymakers need not rush to adjust policy, a counter to President Donald Trump’s demands and recent statements from Fed Governors Christopher Waller and Michelle Bowman that signaled the two would be open to lowering rates as soon as July.
“If it turns out that inflation pressures do remain contained, then we will get to a place where we cut rates, sooner rather than later,” Powell said in response to a question about the possibility of a rate cut next month during a House Financial Services Committee hearing. “But I wouldn’t want to point to a particular meeting. I don’t think we need to be in any rush because the economy is still strong.”
Powell’s remarks before the congressional panel came on the heels of the Fed’s decision last week to leave interest rates unchanged in a range of 4.25%-4.5%. He has maintained policymakers should take a cautious approach to rate cuts as they wait for more clarity on the impacts of Trump’s economic policies, particularly on tariffs.
“The effects of tariffs will depend, among other things, on their ultimate level,” Powell said. “For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”
Today's show features:
- Michael McKee, Bloomberg International Economics and Policy Correspondent and Alix Steel, Bloomberg Radio and TV host, on Powell testimony and global oil markets
- Bloomberg Middle East Geoeconomics Reporter Dina Esfandiary on latest in the Middle East
- Craig Trudell, Bloomberg Global Autos Editor & Bloomberg Businessweek Senior Reporter Max Chafkin on boom in driverless cars
- Katie Hubbard, EVP of Capital Markets for Walton Global
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