Odaily Planet Daily News Nick Timiraos, a reporter for the Wall Street Journal who is known as the "Federal Reserve's mouthpiece," pointed out that Fed officials are encouraged by recent inflation data, which show that price pressures continue to remain at a moderate level, meaning that inflation may soon be closer to the Fed's 2% target. Fed Chairman Powell began two days of congressional testimony on Tuesday, and he delivered a simple message to Congress: Because the economic situation is good, the Fed can take its time to decide when and whether to cut interest rates. The Fed cut interest rates by a full percentage point in the last three meetings of 2024, after interest rates remained at a high level in nearly two decades.
Powell said in a speech to lawmakers on the Senate Banking Committee, "Because our policy stance is much looser now than before and the economy remains strong, we don't need to rush to adjust our policy stance." Powell defended last year's rate cut, calling it a necessary recalibration of its policy stance in response to improved inflation and cooling labor market conditions. The Fed may cut interest rates if the labor market is unexpectedly weak or inflation falls to its 2% target faster than expected. (Jinshi)