Federal Reserve Chair Jerome Powell suggests that rate cuts may not be coming soon | Globe Echo
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Federal Reserve Chair Jerome Powell emphasized in a recent speech that the central bank is not in a rush to cut interest rates despite investor expectations. Powell stated that strong employment data is giving the Fed more time to wait for inflation to reach its 2% target. Several Fed officials, including Atlanta Fed President Raphael Bostic, have voiced concerns about reducing rates too soon due to inflationary risks. Powell indicated that the Fed is unlikely to lower rates back to pre-pandemic levels of around 2% in the near future. Powell emphasized the importance of maintaining the Fed’s independence and ensuring that it remains apolitical. The Federal Reserve under Powell’s leadership is taking a measured approach to monetary policy, balancing the potential risks of cutting rates too early with the dangers of maintaining high interest rates for too long.