Powell urges patience in speech

In a speech delivered today at the forum of American monetary policy in New York, the president of the Federal Reserve Jerome Powell underlined the prudent approach of the Central Bank in the middle of the dominant economic uncertainties.

Powell reiterated The preparation of the federal reserve to maintain current interest rates, by adopting a “wait and see” position monitors the impacts of recent policy changes and economic indicators.

“We don’t need to be in a hurry and we are well placed to wait for greater clarity,” he said.

Powell highlighted the robustness of the American labor market, noting that employers added 151,000 jobs in February, bearing average monthly gains in 191,000 since September.

The unemployment rate has increased slightly to 4.1%, remaining in a narrow range between 3.9% and 4.2% in the past year.

He observed that wage growth has moderated at a more sustainable rate, aligning the supply and demand for labor, thus reducing inflationary pressure from the labor market.

“With the moderation and supply and demand for wage growth, having had a better balance, the labor market is not an important source of inflationary pressure,” he said.

Inflation trends

Addressing inflationPowell noted a significant drop in its peak in the middle of 2022 greater than 7% to 2.5% in January. He warned that recent readings remain a little above the 2% target of the federal reserve.

“The path to the long -est return inflation to our goal has been bumpy, and we expect it to continue,” said Powell.

He stressed the importance of not reacting excessively for short -term fluctuations and reiterated the central bank’s commitment to closely monitor inflation trends to align with long -term objectives.

“Inflation can be volatile from month to month, and we do not react excessively to one or two readings higher or lower than those planned,” he said.

Trade policies and monetary perspectives

Powell discussed recent trade policies, including Trump administration announcements and subsequent delays on steep import rates Affecting business partners such as Mexico, Canada and China.

These policy changes have contributed to market volatility And have complicated economic prospects. Powell highlighted the need to clarify in these areas before making adjustments to monetary policy, declaring that the central bank is well positioned to wait for greater clarity on economic prospects.

Given these factors, Powell indicated that the federal reserve is likely to maintain its unchanged key interest rate in the coming months. The central bank had previously reduced the reference interest rate by 100 basic points to a range of 4.25% to 4.5% at the end of 2024 and maintained this policy in January.

Cryptographic reactions

Crypto responded to Powell’s comments with cautious optimism. Investors seem to be reassured by the patient’s patient’s approach to the federal reserve, although concerns about potential and The top of Trump’s current cryptography persist.

Bitcoin is currently negotiated at $ 88,300.