Fed Chair Powell says US economy strong, inflation positive, allowing time for interest rate cuts
From The National: 2024-04-04 03:00:28
Federal Reserve Chairman Jerome Powell noted the strength of the US economy and positive inflation data, indicating the Fed has time to decide on interest rate cuts. Recent figures showed a 0.4% increase in CPI inflation and 275,000 job gains, surpassing expectations. Powell still predicts rate cuts later in the year despite current strong economic indicators.
Powell’s remarks come after the PCE Price Index slowed in March, aligning more with the Fed’s goals. He emphasized the need for more confidence before cutting rates, without specifying the exact number of cuts expected this year. There is disagreement within the Federal Open Market Committee, with some regional Fed presidents forecasting multiple cuts while others anticipate only one.
With the 2024 election in focus, Powell defended the Fed’s independence and decision-making process, which is shielded from political pressures. Former president Donald Trump accused Powell of altering rates for political motives, prompting a discussion on the limits of presidential influence on the Fed. Powell reaffirmed the Fed’s commitment to making unbiased monetary policy decisions.
Despite political scrutiny and pressure, Powell remains steadfast in maintaining the Fed’s independence and integrity. He stressed the importance of focusing solely on monetary policy without being swayed by short-term political interests. Powell’s tenure as Fed chairman, nominated by both Trump and Biden, underscores the significance of nonpartisan decision-making for economic stability and public trust.
Read more at The National: Fed’s Jerome Powell says ‘we have time’ to consider US interest rate cuts