Fed's Cautious Approach Amid Strong Economy

Fed Chair Jerome Powell, in Senate testimony, emphasized the Fed's cautious stance on interest rate adjustments due to a robust economy with low unemployment and moderate inflation. He highlighted uncertainties arising from potential tariffs and policy changes from the Trump administration, stressing the need for measured economic policies.

Federal Reserve Chair Jerome Powell emphasized a cautious approach to interest rate changes, citing a robust U.S. economy, steady job growth, and moderate inflation during his Senate testimony.

While Powell noted the potential risks and uncertainties posed by new tariffs and tax reforms under President Trump, he stressed patience in policy adjustments to ensure economic stability.

The Fed's decision to maintain steady rates reflects confidence in current economic conditions, despite unclear outcomes from upcoming domestic policies and potential financial sector changes.

(With inputs from agencies.)