The Federal Reserve is prepared to keep its key interest rate unchanged for now as inflation remains elevated and the job market is solid, Chair Jerome Powell said Tuesday on the first day of a two-day appearance before Congress.
After cutting its key rate a full percentage point in the final three months of last year, with “the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell said in written remarks to the Senate Banking Committee.
Powell’s appearance comes as inflation is still above the Fed’s 2% target and the Trump administration is upending many longtime U.S. policies by imposing tariffs on steel and aluminum and seeking to sharply cut government spending. President Donald Trump has also frequently attacked the Fed in the past, raising concerns about the Fed’s historic independence from politics.
Powell did not mention those policy changes in his statement, but says that the Fed’s interest rate is “well positioned to deal with the risks and uncertainties that we face.”
