Jerome Powell Speech: After the Federal Reserve’s latest policy meeting, Chair Jerome Powell announced that interest rates would remain at 4.25% to 4.5%. The decision follows three consecutive rate cuts last year as the central bank assesses inflation trends and labor market conditions.
Federal Reserve Keeps Interest Rates Steady
In a press conference, Jerome Powell stated that the Federal Open Market Committee (FOMC) decided to pause rate cuts due to inflation concerns. The committee’s policy statement indicated that inflation remains elevated, and officials are monitoring economic conditions before making further changes.
“Recent indicators suggest that economic activity has continued to expand at a solid pace,” the statement read. Powell also noted that inflation had not made as much progress toward the 2% target as previously expected. The decision keeps borrowing costs at their current range, allowing policymakers to observe economic data before making further adjustments.
The FOMC’s decision was unanimous, with no officials dissenting. This marks a shift from previous meetings, where some members had disagreed on the pace of rate adjustments.
Jerome Powell Speech: Inflation Concerns and Labor Market Stability
Jerome Powell’s speech emphasized that inflation remains a key concern for the central bank. The latest statement removed language from December’s update that suggested inflation had “made progress” toward the target. Instead, it noted that inflation remains “somewhat elevated.”
Powell also addressed the labor market, stating that the unemployment rate has remained stable in recent months. “The unemployment rate has been broadly stable now for six months,” Powell said. The policy statement also noted that hiring continues at a steady pace, supporting economic growth despite inflation concerns.
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Kelvin Munene Murithi
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