Summary of Jerome Powell's statements - May 2025
Jerome Powell, the Chair of the Federal Reserve, stated
the American, with several important statements reflecting
monetary policy trends under current conditions
Current economic situation:
Current interest rate level:
Powell indicated that interest rates exceeded the
central bank's target of 2%, but he sees that the time
are not suitable for making any adjustments now, adding that
interest "in a good place" currently.
Tariffs and inflation:
Powell warned that the continued increase in tariffs,
As recently announced, may lead to an increase in
inflation and a decline in employment rates. He also indicated
that many participants in the surveys see
these tariffs are a major driver of inflation expectations.
Political effects:
Powell confirmed that President Trump's pressures to cut interest rates
does not affect Federal Reserve decisions,
emphasizing the independence of the bank and that it works to serve
the American people.
Outlook:
Powell believes that the economic impacts of tariffs
The tariffs may be temporary, and there is a lot of
Uncertainty about the future of these policies. Also,
indicated that there are scenarios where a cut might occur
interest is justified later this year, but he cannot determine the appropriate path for interest rates confidently at this time.
The American economy:
Despite some distortions in the first quarter data,
Powell described the economy as strong, but he emphasized that they
They will wait until the picture becomes clearer.
especially with the possibility of signing new trade agreements.
Summary:
The Federal Reserve adopts a cautious approach and monitors
The impact of tariffs and economic fluctuations
before making any decisions regarding interest rates.