“For now, we are waiting to learn more about the direction of the economy before considering any adjustments to our policy,” stated Fed Chairman Jerome Powell during his appearance before the Financial Services Committee.
U.S. President Donald Trump once again criticized Jerome Powell’s stance, labeling him as incompetent, “stupid and stubborn.”
During the hearing, several Republican lawmakers questioned why the central bank has yet to lower borrowing costs.
In reply, Powell emphasized that many economists, both within and outside the Fed, believe that tariffs could exacerbate inflation. Therefore, the Federal Reserve intends to observe developments in the coming months before making any changes.
Last week, the Fed left interest rates unchanged for the fourth time this year.
The U.S. central bank’s key rates thus remain in the 4.25%-4.5% range, as markets and analysts had anticipated.
