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Powell: Not in a hurry to cut interest rates before the impact of Trump's policies becomes clearer

Powell: Not in a hurry to cut interest rates before the impact of Trump's policies becomes clearer

Bitget2025/03/07 17:53

On March 8, Federal Reserve Chairman Jerome Powell said on Friday that he would not rush to cut interest rates before seeing how the policies of Trump's new administration affect the economy. Powell said: "The new government is implementing major policy changes in four different areas: trade, immigration, fiscal policy and regulation. The uncertainty surrounding these changes and their potential impact remains high. Our focus is on distinguishing signals from noise as prospects change. We don't need to hurry; we are fully capable of waiting for a clearer outlook." Powell's speech came during a turbulent period when both stock market and bond yields were falling, after Trump announced high import tariffs on major trading partners Mexico and Canada but later postponed implementation. Although Powell stated that the economy "continues to be in good shape", data also indicates that consumer spending may slow down, with businesses and companies expressing increased uncertainty about economic prospects. Powell added that key indicators remain robust, with uneven but ongoing progress in inflation and employment growth.

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