Editor's PiCK
Powell: "Most Fed officials expect rate cuts by year-end... Cannot rule out July as too soon"
Summary
- Chair Powell stated that most Fed officials expect a rate cut by the end of the year.
- He hinted that it is still uncertain whether a rate cut in July would be too early, and that the decision will depend on upcoming data.
- Current U.S. inflation is showing positive trends, but the effects of tariffs are expected to appear starting this summer.
Jerome Powell, Chair of the Fed, stated his position on rate decisions.
On the 1st (local time), according to Walter Bloomberg, Chair Powell said, "Most Fed officials expect rate cuts by the end of this year," and added, "We cannot conclude yet whether a rate cut in July is too soon." He continued, "As long as the U.S. economy remains solid, waiting is a good option," suggesting that the timing of the rate cuts will be decided based on future data.
He also mentioned that current inflation is showing a positive trend. Powell said, "The U.S. economy is currently in a good state. Excluding tariffs, inflation is proceeding as expected," but added, "However, the effects of tariffs are expected to appear starting this summer."
He also expressed his view regarding pressure from President Donald Trump. Powell stated, "Regarding pressure from Trump, I am focused solely on the Fed’s mandates." When asked whether he would remain on the Fed board after May next year, he replied, "I have nothing to say on that."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
