Powell held a press conference after the political interest in the political interest rate was kept by 4.25 to 4.50 percent.
Powell explained that the economy is generally strong and said that he had made considerable progress in harmony with his goals in the past two years.
Powell said that the labor market conditions have cooled down and maintained their power while inflation remains high, but the long -term goal of 2 percent is much closer.
Powell found that the latest indicators show that economic activity continues to grow at a strong speed, and it was found that the gross domestic product (GDP) exceeded over 2 percent for 2024 in supporting consumer expenses.
“Politics is well positioned”
Powell said that a large number of indicators generally indicate that the conditions on the labor market are largely balanced and that the labor market is not an important source of inflation pressure.
“We do not have to hurry to set up our political attitude because the political guideline is well positioned to deal with the risks and uncertainties and at the same time achieve the goals of the bank.
Powell said that the 5 -year review of the monetary policy framework is carried out this year and that the investigation should be completed by the end of summer and that the Federal Open Market Committee (FOMC) focus is on 2 percent long -term inflation target and becomes are not the focus of the review.
He did not answer Trump's call to “reducing interest rates”
In his speech at the 55th annual meeting of the World Economic Forum (WEF), US President Donald Trump said in Davos City of Switzerland: “I ask that interest should fall immediately.” Powell asked the statements: “I will not give an answer to what the president says or will not comment. It would not be appropriate for me to do this.” he said.
Powell said that you should be sure that the public will continue to do your work as usual and focus on using the bank's vehicles to achieve your goals and that it will best serve the public.
“I've never had contacts,” said Powell, “I have no contact.” He replied.
“We don't have to achieve the goal to reduce interest rates”
Powell explained that the economy is at a very good point and said that they expect more progress in inflation.
“Do you think the committee should wait for inflation to return to the goal to reduce interest rates?” In response to the question, Powell said: “No. We never said that we had to achieve the goal exactly to reduce interest rates.” He said.
Powell, in his answer to the question of how far the Fed is from the neutral interest rates: “We are considerable on the neutral interest rate.” made the evaluation.
Trump said that they will be carefully followed by the administration guidelines
Powell, decision text for monetary policy in the inflation text 2 percent of the statement about the removal of a question “If you look at the first paragraph, we have made some language cleaning there.” he replied. “We only preferred to shorten this sentence.” he added.
In addition, Powell said that it does not intend to send a signal and said: “The result that you can pull out of all this is that our determination to achieve our 2 percent inflation goal in a sustainable way.” he said.
Powell answered a question about the inflation risks regarding the policy of the Trump government and said that they did not know what would happen about customs duties, migration, budgetary policy and regulatory guidelines.
“I think we should allow these guidelines to be announced before we appropriately evaluate their effects on the economy. So we will carefully observe.” he said.
Powell said that you are watching the data to guide you about what needs to be done.
“If political uncertainties are continuous, this can affect the investment decisions of companies.”
Powell pointed out that the footprint of the trade has changed and that he did not focus as much in China as before and that the possibilities of the possibilities for the effects of tariffs and therefore did not want to predict.
Powell found that the uncertainties of trading policy could be important for investment decisions if the uncertainties of trade policy are large and continuous.
Powell said that he has not yet seen any data on this topic, but it has been observed that it is difficult to find employees in the sectors associated with the employment population of immigrants.
“For us, it is important for us to achieve macro developments, which means significant changes to the financial conditions, but of course we consider important changes to the financial conditions.” He said.
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