New York: Federal Reserve Chair Jerome Powell emphasized that there is no rush to cut interest rates, as he awaits greater clarity on the economic impact of President Donald Trump’s new policies. Speaking at an economic forum in New York, Powell stated that the new administration is implementing significant policy changes in four key areas: trade, immigration, fiscal policy, and regulation, noting that uncertainty remains high regarding these changes and their potential effects.
According to Qatar News Agency, Powell highlighted ongoing market volatility, with stock markets and bond yields fluctuating following President Trump’s shifting announcements on steep tariffs for key trade partners Mexico and Canada, followed by delays in their implementation, as well as his decision to double tariffs on imports from China.
While Powell assured that the US economy remains “in good shape,” data also indicate a potential slowdown in consumer spending and growing uncertainty in business outlooks. He added that they need to wait and see how these developments might impact future spending and investment.
Although the US government reported yesterday (Friday) that the economy added 151,000 jobs in February, Powell clarified that actual job growth has averaged 191,000 per month since last September.
He also stressed the goal of maintaining inflation around 2%, despite short-term inflationary pressures. However, he noted that most long-term inflation expectations remain stable and aligned with the country’s inflation control objectives.
The Federal Reserve is expected to keep interest rates unchanged in the current range of 4.25% to 4.50% at the upcoming Federal Open Market Committee (FOMC) meeting on March 18-19.