The Federal Reserve, led by Chair Jerome Powell, plans to keep interest rates at the current level of 4.25% to 4.5% due to overarching uncertainties stemming from the Trump administration's economic policies. As changes in trade, immigration, and regulation unfold, the Fed aims to distinguish substantial trends from transient fluctuations in economic data. Powell indicates that recent surveys signaling consumer anxiety won’t hastily influence monetary policy, as they have been unreliable predictors of actual consumption growth. Hence, the Fed adopts a patient approach as it waits for clearer economic signals before making any adjustments.
Chair Jerome Powell emphasized the Fed's patience in interest rate policy as the economy evolves amid notable changes in the Trump administration's economic strategy.
Powell stated, "While there have been recent developments in some of these areas, especially trade policy, uncertainty around the changes and their likely effects remains high."
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