US Fed Chair provides no clear signal for upcoming rate cuts

During congressional hearings, Federal Reserve Chair Jerome Powell did not provide a specific timeline for potential interest rate cuts. He stated that, given the resilience of the US economy, there is no need to rush into such a decision. However, he acknowledged that rate cuts could be considered if inflation falls below expectations or if the labor market deteriorates.

Powell emphasized that the current economic situation has been affected by uncertainty surrounding the tariff policies of the Trump administration. He noted that new duties could raise prices on goods and slow down economic growth. However, the full impact of these measures is not yet clear, so the Fed plans to wait for additional data before adjusting its policy.

His comments coincided with the release of weak consumer confidence data, which heightened expectations for two potential rate cuts by the end of the year. Bloomberg economists estimate that the first cut could happen as early as September. Nevertheless, Powell did not confirm any specific timelines, citing the need for more information.