The Jerome Powell speech at the latest Federal Open Market Committee (FOMC) meeting confirmed that the Federal Reserve will keep interest rates unchanged. Fed Chair Powell stated that the economy remains strong, and inflation is still above the central bank’s 2% target.
The decision leaves the federal funds rate between 4.25% and 4.50%, marking a pause after three rate cuts in late 2024.
Jerome Powell Speech: No Rush to Cut Rates
During the FOMC meeting, Jerome Powell emphasized that the Federal Reserve is in no hurry to change its policy. He reiterated that inflation needs to show further progress before any adjustments are made.
“With the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Fed Chair Powell said during the Federal Meeting in Washington.
Powell also clarified that the Federal Reserve does not need to wait for inflation to reach exactly 2% before cutting interest rates.
“We don’t need to wait for 2% inflation to cut interest rates,” Powell said, indicating that future rate cuts remain a possibility depending on economic conditions.
Jerome Powell speech in the Federal reserve meeting 2025 also addressed the labor market, stating that the unemployment rate has remained stable in recent months. “The unemployment rate has been broadly stable now for six months,” Powell said. The policy statement also noted that hiring continues at a steady pace, supporting economic growth despite inflation concerns.
Trump Slams Fed Chair Powell Over Inflation
This Jerome Powell speech comes at a time when economists are concerned about external factors that could exacerbate inflation, such as President Trump’s economic agenda. Trump’s policies, including tariff threats and immigration measures, are seen by some as potential contributors to rising inflation.
Moreover, following the speech, US President Donald Trump criticized the Federal Reserve, blaming Powell for high inflation. Trump said.
“If the Fed had spent less time on DEI, gender ideology, ‘green’ energy, and fake climate change, inflation would never have been a problem.”
Trump has repeatedly urged the Federal Reserve to cut interest rates, arguing that high borrowing costs are hurting businesses and consumers. Powell, however, dismissed any political influence on monetary policy, stating that the Fed remains focused on economic data.
“I’m not going to have any response or comment whatsoever on what the president said,” Powell stated. “We will continue to focus on our work and achieve our goals.”
Federal Reserve’s View on Crypto and Banking
During the Jerome Powell speech, the Fed Chair also addressed concerns about cryptocurrency regulations and banking services.
“Banks are perfectly able to serve crypto customers,” Fed Chair Powell stated, signaling that the central bank does not intend to restrict financial institutions from engaging with digital assets.
Crypto markets initially reacted negatively to the Federal Reserve’s decision, with Bitcoin price falling 1.2% and the total crypto market cap declining 2.6%. However, Bitcoin later rebounded 4.5%, trading near $104,783.
Consequently, with inflation still above 2%, most analysts predict that the Federal Reserve will keep rates steady at least until its March meeting. The FOMC will continue monitoring economic data, including labor market conditions and price stability, before making further decisions.
The post Jerome Powell Speech: Fed Chair Hints At No Rush To Cut Rates appeared first on CoinGape.
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