Fed Chairman: No immediate interest rate move needed given strong economy and labor market

Federal Reserve Chairman Jerome Powell emphasized the central bank’s commitment to continuing to curb inflation, stating that monetary policymakers will maintain their current stance until the effects of tariffs on prices become clear. He emphasized that there is no need for immediate interest rate action given the strength of the economy and labor market.

Powell described US economic growth as strong, and the labor market remains at or near full employment. He noted that inflation remains above the Fed’s 2% target, while the effects of President Donald Trump’s tariffs remain unclear.

He noted that the impact of policy changes on the economy remains uncertain. He added, “Policymakers are well positioned to wait and see the likely path of the economy before considering any adjustments to our monetary policy.”