Fed Chair Powell says central bank doesn't 'need to be in a hurry' to lower interest rates further
Federal Reserve Chair Jerome Powell on Tuesday reiterated the central bank's commitment to bringing inflation down and signaled that policymakers aren't in a rush to push interest rates lower.
In remarks before the Senate Banking Committee, Powell called the economy «strong overall» with a «solid» labor market and inflation that is easing but still above the Fed's 2% goal.
With those conditions prevailing, he said the Fed doesn't need to move quickly to ease monetary policy.
«With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,» Powell said. «We know that reducing policy restraint too fast or too much could hinder progress on inflation. At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment.»
Powell's comments came in the first of two appearances this week on Capitol Hill. He speaks to the Senate Banking Committee on Tuesday then the House Financial Services Committee on Wednesday.
Much of the proceeding focused on bank supervision rather than monetary policy.
Ranking Democratic Sen. Elizabeth Warren of Massachusetts charged that President Donald Trump's move to halt the work of the Consumer Financial Protection Bureau left consumers without a watchdog of the nation's largest banks.
Warren asked Powell who is administering consumer compliance outside of the CFPB, to which he responded, «I can say no other federal regulator.» Powell nonetheless said the broader banking system is safe.
On monetary policy, Powell's remarks were largely in keeping with his recent statements and those of his colleagues, who are digesting a number of fiscal and
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