Powell: Fed Does Not Need to Rush to Cut Interest Rates

BlockBeats News, February 11th, Federal Reserve Chairman Powell on Tuesday at the start of a two-day congressional hearing conveyed a simple message to Congress: due to the strong economic performance, the Federal Reserve can gradually decide when and whether to cut interest rates.

According to a prepared speech, Powell told lawmakers at the Senate Banking Committee, "Given that our current policy stance is less restrictive than it was, and the economy continues to perform well, we do not need to rush to adjust our policy stance."

Powell also defended last year's rate cuts, calling it a necessary adjustment to its policy stance in response to improvements in inflation and cooling labor market conditions. Looking ahead, he said that if the inflation rate does not continue to decline to the target level and the economy remains stable, the Federal Reserve may keep rates unchanged for a longer period.

Powell said that if the labor market unexpectedly weakens or if inflation falls faster than expected to the 2% target, the Federal Reserve may cut rates. (FXStreet)