Jerome Powell Speech: Fed Maintains Interest Rates at 4.25%-4.5%, Citing Inflation and Labor Market Stability
After the latest Federal Reserve policy meeting, Chair Jerome Powell announced that interest rates would remain unchanged at 4.25% to 4.5%, as the central bank continues to monitor inflation trends and the labor market.
Key Highlights:
- Interest rates remain steady following last year’s three consecutive rate cuts.
- Inflation concerns persist, prompting a cautious approach before further rate adjustments.
- Unemployment remains stable, with continued job growth supporting economic expansion.
- Fed signals a data-driven strategy, assessing economic conditions before making future policy decisions.
Fed’s Approach to Inflation and Economic Growth
During a press conference, Powell stated that the Federal Open Market Committee (FOMC) chose to pause rate cuts due to inflationary pressures. The committee’s policy statement highlighted that while economic activity continues to expand, inflation has not yet made sufficient progress toward the 2% target.
Powell also addressed the labor market, noting that the unemployment rate has remained stable over the past six months. Despite inflation challenges, hiring has continued at a steady pace, contributing to economic resilience.
With no dissenting votes among Fed officials, the decision reflects a unified stance on maintaining the current rate range until further economic data supports adjustments.
