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