No need to rush to rate decision as economy remains in good place: Powell
Federal Reserve chairman Jerome Powell on Friday suggested the central bank may continue to take a patient approach on interest rates as the economy remains in good place despite elevated uncertainty.
"We do not need to be in a hurry and we are well positioned to wait for clarity [on whether to adjust monetary policy]," Fed chairman Jerome Powell said Friday in prepared comments to the University of Chicago Booth School of Business’ US Monetary Policy Forum before level discussion
The lack of urgency from the Fed to signal clues on future monetary policy decision come as many worry about the impact of tariffs on the economy, which has been spurred by a strong consumer.
The Fed chief said that while recent indicators "point to a possible moderation in consumer spending," the economy remains in a good place and "doesn’t need the Fed do anything right now."
"Recent surveys of households and businesses point to heightening uncertainty about the economic outlook," he added, but it "remains to be seen how these developments may affect future spending and investment."
The labor market, meanwhile, remains "solid and broadly in balance, Powell said, citing many indicators including the monthly jobs report released Friday.
The path toward 2% inflation has been bumpy and we expect that to continue
On the Trump administration’s tariffs, which have sowed economic uncertainty, Powell acknowledged that while the recent developments on trade policy, but said "uncertainty around the changes and their likely effects remains high,"
"As we parse the incoming information, we are focused on separating the signal from the noise as the outlook evolves. We do not need to be in a hurry, and are well positioned to wait for greater clarity," he added.
Source: Investing.com
