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Jerome Powell Advocates Caution on Interest Rates Amid Economic ...
2025-06-25 10:30:10
Economy
Interest Rate

Jerome Powell Advocates Caution on Interest Rates Amid Economic Uncertainty

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Federal Reserve Chairman Jerome Powell recently addressed Congress, emphasizing the need for caution regarding interest rate adjustments amid rising inflation and economic uncertainties. Despite calls from President Trump for lower rates, Powell underscored the importance of maintaining price stability to support a robust labor market.

Fed officials have expressed varying opinions on potential rate cuts, with some suggesting they may be warranted if inflation remains manageable or labor market conditions worsen. Powell also reassured that the Fed is not overreacting to geopolitical tensions, indicating a measured approach to monetary policy.

As the market reacts to these developments, including ongoing conflicts in the Middle East, the future of interest rates remains a pivotal topic for economic stability.

Related news on that topic:

Powell Reaffirms Cautious Fed Stance Amid Trump's Interest Rate ... Pressure

Jerome Powell, the Chair of the Federal Reserve, has firmly stated that the central bank will not rush to lower interest rates, despite persistent calls for cuts from President Trump. In his testimony before Congress, Powell highlighted the importance of observing the economy's response to rising tariffs before making any adjustments. He emphasized the Fed's cautious approach, pointing out that while the economy is performing well, uncertainties regarding inflation remain. This stance contrasts sharply with the more aggressive monetary policies seen in other regions, like the eurozone. As Powell prepares for further scrutiny in upcoming meetings, the tension between his measured approach and Trump's demands continues to illustrate the complexities of economic governance.

Will Jerome Powell Yield to Growing Calls for Interest Rate Cuts?

Federal Reserve Chair Jerome Powell faces significant pressure regarding interest rates as the economy shows mixed signals. While Powell maintains a steady rate, citing a robust economy, calls for cuts grow louder, particularly from President Trump and housing experts like Bill Pulte. The Fed's dual mandate, focused on controlling inflation and unemployment, complicates the decision-making process. Some officials, including San Francisco Fed President Mary Daly, suggest potential rate cuts may be necessary by fall, while others, like Christopher Waller, advocate for immediate reductions. This internal division reflects broader concerns over rising inflation and a cooling labor market. Additionally, the housing market remains sensitive to interest rates, as high rates have exacerbated the supply crisis. Economists predict a possible decrease in mortgage rates next year, contingent on inflation trends. Ultimately, the Fed's actions will play a crucial role in shaping economic stability and consumer confidence in the coming months.

Read 4 more recent news on this topic

The press radar on this topic:

nbcnews
24. Juni 2025 um 14:05

Fed chairman Jerome Powell testifies amid ongoing Trump attacks over interest rates

Federal Reserve Chairman Jerome Powell testified before Congress, stating that cutting interest rates would be premature due to rising inflation and uncertainty caused by Trump's trade war and immigration policies. President Trump has repeatedly called for lower interest rates, citing a lack of inflation. Powell acknowledged that forecasters predict an uptick in inflation later this year, but emphasized the need for price stability to maintain strong labor market conditions.
The Street
24. Juni 2025 um 22:39

Fed official suggests major interest rate change coming soon TheStreet Daily Newsletter

Federal Reserve officials Michelle Bowman and Christopher Waller suggest lowering interest rates to address economic risks. Bowman proposes cutting rates if inflation remains near target or labor market conditions deteriorate. Waller previously advocated for a July rate cut, citing concerns about the labor market's stability. Some analysts, including Stephen Guilfoyle, view Waller's comments as an
The Street
28. Juni 2025 um 07:47

Federal Reserve is not 'overreacting' to Iran-Israel conflict, says Powell

Federal Reserve Chair Jerome Powell testified before Congress, reiterating that the Fed is not overreacting to geopolitical tensions by considering interest rate reductions. Powell stated that the economy's strength allows for a 'pause' in rate cuts despite upward inflation trajectory. He expressed support for a stablecoin framework, but declined to take a stance on Wall Street's new stablecoin act.
The Street
25. Juni 2025 um 19:17

Stock Market Today: Stocks Continue Rally, Oil Dips Below $65, Powell Speaks TheStreet Daily Newsletter

The Israel-Iran cease-fire is at risk after Iran allegedly killed four Israelis in a missile strike, prompting Israel to respond with additional missiles. US President Trump has intervened, ordering Israel to stop. Meanwhile, Fed Chairman Jerome Powell testifies before the Senate today, stating that the central bank will take a 'wait-and-see' approach on interest rates due to upcoming tariffs. The market is responding negatively, with stock futures and some bond-market futures declining.
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