Key Takeaways:
Federal Reserve Chair Jerome Powell signaled caution on cutting interest rates, citing uncertainty surrounding the Trump administration’s new policies.
Powell pointed to major policy shifts in trade, immigration, fiscal policy, and regulation as factors adding complexity to the Fed’s economic outlook.
Despite market volatility and concerns over economic slowdown, Powell stated there is no urgency to act on rates until the Fed has a clearer picture.
Stock markets and bond yields declined following Powell’s remarks, reflecting investor unease over trade tensions and economic uncertainty.
Fed Takes a Wait-and-See Approach on Rate Cuts
Speaking on March 8, Federal Reserve Chair Jerome Powell emphasized that the central bank will not rush to cut interest rates as it assesses the economic impact of new policies under the Trump administration.
“We are seeing significant policy changes in trade, immigration, fiscal policy, and regulation. Given the high uncertainty, we need to distinguish between signals and noise before making any policy adjustments.” – Jerome Powell