Powell: The economy is strong but inflation is still high, and the Fed is not rushed to adjust the policy

PaNews January 30 news, Fed Chairman Powell said at a press conference that the US economy is still strong, and the labor market is still steady. He pointed out that inflation is close to the goal but still slightly higher. The labor market is not the source of inflation pressure, so the Fed does not need to rush to adjust the policy interest rates. Discussion on the policy framework has begun at this meeting.

Powell emphasized that the Fed needs to take interest in substantial progress in inflation or the employment market will only be considered, and it is expected that inflation will be further improved in the future. He said that the Fed's current policy has a "substantial but non -high" restriction, and the overall financial conditions are slightly loose.

In addition, Powell mentioned that artificial intelligence is an important factor in the development of the stock market, but the market fluctuations caused by it are not continuous changes, and the Fed pays more attention to the macroeconomic. He also said that the interest rate level of the Federal Reserve is significantly higher than that of neutral interest rates, and the reserve funds in the balance sheet are still abundant.

When asked if it was possible to cut interest rates in March, Powell reiterated that there was no need to worry. He pointed out that the Fed will spend time evaluating the influence of new government policies, including tariffs, immigration, fiscal and regulatory policies, etc., and emphasize that policies will not be eager to formulate policies to ensure a full understanding of policy response measures.