The president of the federal reserve, Jerome Powell, told legislators on Tuesday that the Fed was not in a hurry to adjust a cautious position While decision -makers of the central bank digest signs of obstinate inflation and political uncertainty of the new Trump administration.
“With our political position now much less restrictive than it was and the economy remaining strong, we do not need to be in a hurry to adjust our political position,” said Powell in his testimony prepared on Tuesday In front of the Senate Banking Committee.
Powell This week is making its half -yearly public appearance in Capitol Hill, faced with the legislators who provide the Fed’s long -standing independence base compared to the executive branch. He will testify on Wednesday before the Chamber of Financial Services Committee.
Powell is expected to face a series of questions that could go from monetary policy and the effect of Donald Trump’s prices in the future of banking capital requirements and the actions of major lenders to “lush” certain customers.
The central bank held stable rates in the range of 4.25% to 4.5% at its last political meeting on January 29 after having reduced rates for three consecutive meetings at the end of 2024. Powell and other decision -makers From the Fed pointed out that they planned to move slowly this year, while they assess the way of inflation and the effect of Trump’s economic policies.
The president has so far gave Powell and the Fed a certain breathing room. After initially reprimanded the central bank on inflation, Trump said about the January 29 decision that “I think that rates maintenance at this stage was the right thing to do”.
Find out more: Decision of the Fed rate: how it affects your bank accounts, loans, credit cards and investments
Trump’s Treasury Secretary Scott Bessent offered even more insurance last week when he said Trump did not ask the Fed to reduce its short -term rates and rather focus on reducing cost D ‘Borrowing in the longer term by targeting the yield on the treasure at 10 years binding.
Not everyone is that Trump’s orbit remains silent on the Fed. Billionaire Elon Musk suggested in a series of publications on social networks Last weekend, the Fed should undergo a more in-depth examination.
“All aspects of the government must be entirely transparent and responsible for the people. No exception, including, if not above all, the federal reserve,” displayed Musk, who takes a Washington tour in Washington as head of the Ministry of the ‘Government efficiency (DOGE).
Musk has already said that the Fed was “absurdly exaggerated. “”
Powell was asked about these comments at a January press conference and said: “You know, we organize a very meticulous budgetary process. We are fully aware that, you know, we owe it to the public, And we believe we are doing this. “
