Fed Chair Powell: We Have Significant Room to Cut Interest Rates

WASHINGTON – U.S. Federal Reserve Chair Jerome Powell stated on Tuesday that the central bank now has a greater ability to respond to economic shocks than it did a few years ago. He emphasized that the current level of interest rates provides significant room for cuts if necessary.

"We are at a higher interest rate level, (which means there is) significantly more room to cut than there was when interest rates were near zero," Powell said while testifying before the Senate Banking Committee.

This statement is interpreted as Powell's effort to assure markets and lawmakers that the Fed has enough "ammunition" to combat a potential recession, especially amid global uncertainties following the conflict in the Middle East.

Although not indicating cuts in the near term, these comments underscore the Fed's strategy: the current tight interest rate policy not only serves to curb inflation, but also rebuilds their capacity to effectively stimulate the economy in the future.#PowellSpeech $USDC $BTC