#PowellRemarks: Cautious Signals from the Heart of Monetary Policy
In his recent statements, Federal Reserve Chairman Jerome Powell confirmed that the central bank will keep interest rates unchanged, despite growing political pressures to lower them. These remarks came amid economic and geopolitical tensions, most notably the trade dispute and the impact of tariffs on inflation.
Powell indicated that inflation remains a challenge, despite some signs of a slowdown, making it difficult to take swift steps towards cutting rates. He also expressed concern that trade policies could lead to sustained price increases, which could complicate the bank's mission to achieve price stability.
Powell's statements reflect a cautious stance, balancing support for economic growth with maintaining price stability, at a time when political and economic pressures on monetary policymakers are increasing.