No urgency for Fed to lower interest rates: Powell

Federal Reserve Chairman Jerome Powell

Federal Reserve Chairman Jerome Powell acknowledged the strength of the US economy and labor market while reaffirming that inflation remains above the 2% target.

Testifying before the Senate Banking Committee on Feb. 11, Powell reiterated the Federal Reserve’s commitment to lowering inflation, stressing that policymakers see no urgency in cutting interest rates.

"The current monetary policy is less restrictive than before, and the economy remains strong, so there is no need to rush in adjusting our policy stance," he stated.

He cautioned that an overly aggressive shift toward an accommodative monetary policy could stall inflation’s decline, while excessive tightening might weaken economic activity and the labor market.

Powell further noted that the current policy stance—with the federal funds rate ranging between 4.25% and 4.5%—offers the flexibility needed to balance both objectives: curbing inflation and supporting economic growth.