From CNBC: 2024-04-03 12:59:11

Jerome Powell, chair of the US Federal Reserve, signaled a potential shift towards looser monetary policy, boosting investor risk appetite. Powell emphasized a patient approach in evaluating inflation for possible interest rate cuts. Market expectations of policy easing have been adjusted due to stubbornly high inflation rates and resilient labor market conditions.

Fed Chair Powell emphasized a cautious approach towards policy changes, highlighting the solid economic growth, balanced labor market, and the path towards lower inflation. Other Fed officials echoed a patient stance on rate cuts, despite higher-than-expected job gains and inflation data. Market uncertainty persists as traders reassess the probability of a June rate cut.

Remarks on Fed independence and avoiding political biases were made by Powell, with the upcoming presidential election adding to the importance of impartial decision-making. Powell emphasized the Fed’s focus on economic analysis and the long-term well-being of the economy, rather than getting involved in climate change issues or financial preparations for related events.

Read more: Fed’s Powell emphasizes need for more evidence that inflation is easing before cutting rates