In his latest speech, Fed Chair Jerome Powell emphasized a data-dependent approach to monetary policy, balancing inflation control with economic growth. While acknowledging progress on inflation, Powell noted that more evidence is needed before considering rate cuts. The Fed remains cautious, prioritizing stability amid global uncertainties and fluctuating labor markets. Markets reacted cautiously, with investors parsing his remarks for hints on future rate moves. Powell reiterated the Fed’s commitment to achieving price stability while avoiding unnecessary economic harm. His comments suggest a patient stance, leaving the door open for adjustments based on incoming economic data.
