In a speech presented at the US Monetary Policy Forum in New York City today, Jerome Powell, chairman of the Federal Reserve, emphasized the cautious approach of the central bank, which has a superior economic uncertainty.
POWELL has recently repeated the preparation of the Federal Reserve Bank to adopt a “atmosphere and view” position when monitoring the recent policy change and economic indicators.
“We don’t have to be surrounded and are well located to wait for greater sharpness,” he said.
POWELL emphasized the robustness of the US labor market by mentioning that employers have added 151,000 jobs in February to raise the average monthly job to 191,000 since September.
The unemployment rate increased slightly to 4.1%within a narrow range between 3.9%and 4.2%last year.
He observed that wage growth was relaxed at a more sustainable speed, causing labor supply and demand to reduce inflation pressure in the labor market.
“The labor market is not an important source of inflation pressure, as wage growth control, labor supply and demand are better balanced.”
Inflation trend
POWELL has shown that POWELL, which has solved inflation, has decreased significantly by more than 2.5% in mid -mid -2012. He warned that recent reading remains somewhat more than the 2% goal of the Federal Reserve Bank.
POWELL said, “The way to continue the inflation continuously on our goals is bumpy, and we expect that we will continue.
He emphasized the importance of not responding to short -term fluctuations and repeated the central bank’s promise to closely monitor inflation trends to match long -term goals.
“Inflation can be highly volatile in a month, and we do not react excessively to one or two less than expected.”
Trade policy and monetary outlook
POWELL deals with recent trade policies, including the Trump administration’s announcement and subsequent delays on steep import tariffs that affect trade partners such as Mexico, Canada and China.
These policy shifts contributed to market volatility and complicated economic prospects. POWELL emphasized the need for clarity in this field before adjusting the monetary policy, and the central bank stated that it was well positioned to wait for the clarity of the economic outlook.
Given these factors, PoWELL is unlikely that the Federal Reserve will not change the main interest rate in the next few months. The central bank had previously reduced the benchmark interest rate from 4.25% to 4.5% in late 2024 and maintained this policy in January.
Encryption reaction
Crypto responded to POWELL with careful optimism. Investors appear to have been reevaluated by the Federal Reserve’s patient approach, but concerns about potential stain planning and Trump’s ongoing encryption summit persist.
Bitcoin is currently trading at $ 88,300.