{"id":3668,"date":"2025-03-07T19:56:58","date_gmt":"2025-03-08T00:56:58","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/03\/07\/powell-says-the-fed-is-in-no-hurry-to-adjust-rates-amid-trump-policy-uncertainty\/"},"modified":"2025-03-07T19:56:58","modified_gmt":"2025-03-08T00:56:58","slug":"powell-says-the-fed-is-in-no-hurry-to-adjust-rates-amid-trump-policy-uncertainty","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/03\/07\/powell-says-the-fed-is-in-no-hurry-to-adjust-rates-amid-trump-policy-uncertainty\/","title":{"rendered":"Powell Says the Fed Is in No Hurry to Adjust Rates Amid Trump Policy Uncertainty"},"content":{"rendered":"
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Jerome H. Powell, chair of the Federal Reserve, said the central bank is focused on the \u201cnet effect\u201d of President Trump\u2019s sweeping economic agenda amid high uncertainty about which policies will actually be enacted, as he reiterated that officials are still not in a \u201churry\u201d to adjust interest rates.<\/p>\n

\u201cAs we parse the incoming information, we are focused on separating the signal from the noise as the outlook evolves,\u201d Mr. Powell said at an event on Friday. \u201cWe do not need to be in a hurry, and are well positioned to wait for greater clarity.\u201d<\/p>\n

If inflation stays sticky but the economy remains strong, the Fed chair said the central bank can \u201cmaintain policy restraint for longer.\u201d But if either the labor market were to weaken more than expected, or inflation were to rapidly decline, Mr. Powell said officials can \u201cease policy accordingly.\u201d<\/p>\n

His comments underscore the delicate balancing act that Fed is trying to navigate at a tenuous moment for the economy.<\/p>\n<\/div>\n<\/aside>\n<\/div>\n

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In an interview on Friday, Austan D. Goolsbee, president of the Chicago Fed and a voting member on this year\u2019s policy-setting committee, warned that a situation in which inflation stayed sticky while growth deteriorated at the same time would be a \u201charder problem\u201d for the Fed to solve and something that is increasingly \u201con the radar screen\u201d as a result of the policies that Mr. Trump is pursuing.<\/p>\n

\u201cTariffs on intermediate goods are a negative supply shock,\u201d he said, referring to goods that are used to make other products and services for consumers. \u201cIf there were large negative supply shocks that were to hit the economy, they would have a tendency to both drive down employment and drive up prices.\u201d<\/p>\n

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