Federal Reserve Chairman Jerome Powell stated on July 1 that, given the uncertainty brought about by current tariffs and their potential impact on prices, the Federal Reserve has decided to pause interest rate hikes to more accurately assess their effects on inflation and the overall economy. Powell mentioned that, against the backdrop of a strong US economy, the Fed is inclined to adopt a cautious approach, opting for observation and waiting for more information to evaluate inflation and economic trends.
Powell also noted that the current fundamentals of the US economy are robust, providing space for the Fed to adopt a wait-and-see strategy. This indicates that the Fed is not in a rush to implement aggressive measures of loosening or tightening. Powell forecasted that inflation levels might rise during the summer period, but overall, they remain within a predictable range. He reiterated that inflation is moving in the right direction towards the Fed’s goals, but has not yet fully achieved them. (Xinhua Finance)

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