Federal Reserve in No Rush to Reach Neutral Interest Rate, Says Jerome Powell

The Chair of the U.S. Federal Reserve, Jerome Powell, recently stated that the central bank is not in a rush to reach the neutral interest rate, which is deemed the optimal level to stimulate the economy without overheating it. In a meeting with reporters, he explained that the Fed's approach is aimed at maintaining economic stability rather than hastily achieving specific targets.

Powell noted that amidst the current economic uncertainty, it is crucial to closely monitor changes in macroeconomic indicators. The central bank will continue to exercise caution in its decisions and will not rush to alter monetary policy until clear signals about the state of the economy are received. He emphasized that there is currently no need for drastic actions, as changes in monetary policy conditions have become part of a broader strategy.

Powell also discussed the influence of global economic factors on his decisions, pointing out the need to consider international trends that could affect the American economy. He cited examples of market volatility and uncertainties related to foreign economic policies, which require a more measured approach from the central bank.

The Chair assured that the Fed will act in the interest of long-term stability and economic normalization, while highlighting that current decisions must be based on analytical data and expertise, not on political pressures or short-term interests.

Thus, Powell underscores the necessity for a sensible and thoughtful approach to the economy, hoping for a smooth recovery and balanced conditions for growth in the future.

#FederalReserve #JeromePowell #Economy #InterestRate #Stability #FinancialMarkets #MonetaryPolicy