Federal Reserve Chair Jerome Powell indicated that interest rates are not expected to fall imminently, citing a robust job market and elevated inflation as primary factors. During a Senate testimony, Powell emphasized the Fed's cautious approach, stating that additional rate cuts would depend on further cooling of inflation or a noticeable decline in employment. The uncertainty surrounding President Trump's tariff policies also complicates the Fed's decisions, as they could increase inflation. Powell avoided political commentary and reminded the committee of legal boundaries concerning presidential influence over the Fed.
"The Federal Reserve does not need to be in a hurry to cut interest rates given the strong job market and ongoing elevated inflation levels."
"Further cuts to the benchmark interest rate will likely have to wait until either inflation cools down significantly or there's a notable softening in the job market."
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