Fed Chair Jerome Powell: No Rate Cuts Until Inflation Drops ‼️‼️‼️‼️‼️‼️‼️‼️‼️
Jerome Powell, the Federal Reserve Chair, testified before the US Senate Banking Committee, sharing his views on the economy and monetary policy. He emphasized that interest rates won't be lowered until inflation shows a sustained decline. While inflation remains a concern, it's not the only risk the Fed is monitoring. Powell expressed confidence in the economy's growth, citing strong private demand and a robust labor market, with unemployment at 4.1%. However, he cautioned that premature or excessive rate cuts could undermine progress on inflation and harm economic activity and employment. Powell's testimony highlighted the Fed's balanced approach to its dual mandate of price stability and maximum employment.