Federal Reserve Chair Jerome Powell has testified before Congress, stating that the central bank is in no rush to ease monetary policy despite recent signs of inflation moderation. Speaking on 11 February 2025, Powell reaffirmed the Fed’s commitment to achieving stable prices while supporting economic growth.
While inflation has slowed to 2.6%, Powell cautioned that reducing policy restraint too quickly could undermine the Fed’s progress toward its 2% target. “We are attentive to risks on both sides of our mandate and remain prepared to adjust policy as appropriate,” he said. Powell made no explicit commitment to rate cuts, indicating that the central bank will continue assessing incoming data before making adjustments.
His testimony follows uncertainty in markets, with some analysts expecting rate reductions later in 2025, while others point to persistent inflation risks. Powell’s remarks suggest the Fed remains cautious, balancing inflation concerns with sustained economic expansion.
The hearing also touched on new trade policy measures introduced by the Trump administration, which have added another layer of economic uncertainty. Powell noted that while the Fed does not set trade policy, it will react to its effects on inflation, employment, and growth.
Powell’s testimony underscores the Fed’s measured approach, ensuring that any future policy adjustments align with economic conditions rather than market speculation.
