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Powell says there's no rush to ease more given strong economy - REUTERS
(Reuters) -The U.S. Federal Reserve is in no rush to cut its short-term interest rate again given an economy that is "strong overall," with low unemployment and inflation that remains above the Fed's 2% target, Fed Chair Jerome Powell said in opening remarks prepared for delivery at a Senate Banking Committee hearing.
"The economy is strong overall and has made significant progress toward our goals over the past two years," Powell said, with a 4% jobless rate considered around the level of full employment, and inflation lower though still more than half a percentage point above the Fed's target.
"We know that reducing policy restraint too fast or too much could hinder progress on inflation," Powell said, reiterating language used after the Fed at its January meeting held interest rates steady.
Powell's Senate testimony is the first of two days of hearings on Capitol Hill that come as the Fed grapples with how policies enacted and expected from President Donald Trump impact an economy that, by many metrics, is already performing well.
Powell declined to comment on the Trump administration's tariff policies but acknowledged there have been issues on the trade front.
MARKET REACTION:
STOCKS: The S&P 500 was off 0.15%, a bit less than before Powell's comments started coming out
"The economy is strong overall and has made significant progress toward our goals over the past two years," Powell said, with a 4% jobless rate considered around the level of full employment, and inflation lower though still more than half a percentage point above the Fed's target.
"We know that reducing policy restraint too fast or too much could hinder progress on inflation," Powell said, reiterating language used after the Fed at its January meeting held interest rates steady.
Powell's Senate testimony is the first of two days of hearings on Capitol Hill that come as the Fed grapples with how policies enacted and expected from President Donald Trump impact an economy that, by many metrics, is already performing well.
Powell declined to comment on the Trump administration's tariff policies but acknowledged there have been issues on the trade front.
MARKET REACTION:
STOCKS: The S&P 500 was off 0.15%, a bit less than before Powell's comments started coming out
