The Chairman of the U.S. Federal Reserve, Jerome Powell, confirmed that the current time requires patience and caution before making any changes to monetary policy, pointing out the importance of having more clarity regarding the economic and inflation trajectory.
Powell's remarks came during his speech at the Economic Club in Chicago, where he noted that economic growth in the United States is likely to have slowed during the first quarter of the year, despite the overall strength of the U.S. economy.
The Chairman of the Federal Reserve explained that inflation is still slightly above the targeted rate of 2%, but has seen a significant decline compared to its previous levels, which supports expectations for a gradual improvement in economic performance.
Powell indicated that the increasing uncertainty and risks surrounding economic forecasts require caution when making monetary policy decisions, emphasizing that the Federal Reserve will closely monitor the data before taking any future steps.
As the Federal Reserve continues to monitor indicators of inflation, growth, and the labor market, Jerome Powell believes that taking a step back at this stage gives policymakers a chance to better assess the economic landscape before making decisions that impact the U.S. economy.
