President Donald Trump’s call for immediate deduction, Jerome Powell directly, said that the Federal Reserve of the United States will continue to look forward to seeing how the economy develops before deciding whether to reduce its main interest rate.
“So far, we are good to wait for more than the potential course of the economy,” said the Republican-led Tuesday on the Republican-Republican-American House Committee on Financial Services.
Powell has told Congress members that FoP or US Central Bank does not merely approve or criticize Trump’s rate plans to deal with the expected consequences on inflation.
Powell said, “We do not comment on the rate of federal reserve.” Our work is controlling inflation and when policies have a short-medium-medium, meaningful consequences, inflation becomes our job. “
Responding to the suggestions of GOP members that Trump repeatedly demanded the rates, Powell said The highest inflation approach throughout the year Economists are widely shared.
The main aspects of Trump’s trade policy are not resolved, regardless of the reluctance to cut the Fed prices, “All the professionals who are expecting a meaningful increase in inflation during this year… I know.”
Changes
Powell said the Central Bank wants more time to see if the rising rates increase the inflation before lowering the rate of rising rates. He expects a lot of information about the impact of inflation in the next few months, assuming that he will see the effect of more rates on the data of the data starting from June.
At the beginning of the hearing, Powell realized, “This year, the price rise is likely to raise prices and weighing financial activities.”
“The effects on inflation can last a short time and reflect on the price level–time changes. It is also possible that the influence of inflation can be more persistent than that … At present, we are good to wait for more access to any adjustment of any adjustment in our strategic role.”
After the release of Powell’s testimony, investors reduced their strategic interest rates at the July meeting and increased the possibility of lowering rates in September and followed the post -second year.
Powell’s testimony, usually in the case of his half -Congress attendance, tracks the most recent policy statement of the central bank approved last week. At that meeting, Fed’s official officials are currently 25.25 percent to 4.5. In the per cent category, the benchmark interest rates unanimously voted for stagnation and no indications that the rate cuts are close.
According to the new financial estimates released at that time, Median officials are expected to cut the current market prices at the end of the year at the end of the year.
In recent days, Trump’s two fed governors have said that the rates may drop as soon as the July meeting, as inflation has not yet increased while answering the rates, but the two Reserve Bank president says inflation will still intensify in the rest of the year.
Trump, who appointed Powell as a chair in the first tenure, but in the next spring POW you are expected to replace them when Powell has expired.
He said in a social media post before the hearing, “We should have at least two to three points,” he said, “Congress really works a very fantastic, tough person.”
Powell has formed a strong alliance in the Congress on three terms as the Fed Chair. The Republican and Democrats often argue with the Fed’s observation.
In his reality, Powal said that the economy is in a “concrete state”, low unemployment and inflation are less than the peak of his partner.
But there is a lot of stream about Trump’s trade policies, the July 9 deadline has come closer to the highest rates of large countries.
“The policy shift will be serious to understand the result,” Powell said.
“Changes in policy are developing and their effects on the economy remain uncertain,” said Powell.
Powell’s comments about inflation came up because customers’ confidence began to sink again. Today, the Conference Board announced its monthly report, which from May has seen half of the customer’s confidence erase.
“Inflation and high price were another important concern by consumers in June,” the report said. “However, there was more to reduce inflation as compared to the previous month.”
