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Powell: US economy not sending signals that urge rate cut
Federal Reserve Chairman Jerome Powell said on Thursday that strong economic growth in the United States will allow policymakers to be more cautious in deciding how quickly and how quickly to cut interest rates.
“The economy is not sending any signals that we need to rush to cut rates. The strength we see in the economy now gives us the ability to carefully manage our decisions,” Powell said in remarks to business leaders in Dallas.
In an upbeat assessment of current conditions, the US central bank chief described domestic growth as “the best ever seen in any major economy in the world.”
He particularly stressed that the labor market is holding up well despite disappointing job growth in October, which he attributed largely to storm damage in the Southeast and labor strikes.
Powell noted that the unemployment rate had been rising but has stabilized in recent months and remains low by historical standards.
On the issue of inflation, Powell cited “broad-based” progress in its approach, noting that Fed officials expect it to continue to drift toward the central bank’s 2% target. Powell hinted that reaching the target may be “a bumpy road at times,” but stressed that “inflation is very close to our longer-term 2% goal, but it’s not there yet. And we’re committed to finishing the job.”
