The Federal Reserve remains cautious about uncertainties in the economy

From CNBC: 2025-02-23 06:53:47

Federal Reserve Chair Jerome Powell testified before the Senate on monetary policy. Policymakers are cautious about uncertainties in the economy, including trade and immigration policy. The Fed remains neutral amid volatility from President Trump’s agenda. Inflation remains above the 2% target, prompting caution in policy decisions.

St. Louis Fed President sees risks of inflation staying high. Policy remains modestly restrictive. Other Fed officials emphasize the need to remain vigilant. Uncertainty about tariffs impacts inflation and economic activity. Chicago Fed President Goolsbee is cautious about potential shocks and not in favor of further interest rate moves.

Fed minutes indicate concerns about financial stability and leverage risks. Economist Zandi warns of potential sell-off in the bond market. The bond market is fragile, with primary dealers struggling to keep up. Fed unlikely to cut rates due to uncertainty. Zandi warns of economic storms ahead, urging caution in policy decisions.

Read more: The Fed is stuck in neutral as it watches how Trump’s policies play out