Fed Chairman Powell: Fed does not need to rush to cut interest rates

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ODAILY
02-11
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Odaily Odaily News reports that Federal Reserve Chairman Powell conveyed a simple message to Congress on Tuesday at the start of his two-day hearing: due to the strong economic performance, the Federal Reserve can gradually decide when and whether to cut interest rates. According to the prepared speech, Powell will tell the Senate Banking Committee, "Given that our current policy stance is not as restrictive as it once was, and the economy remains strong, we do not need to rush to adjust our policy stance." Powell also defended last year's interest rate cuts, saying it was a necessary adjustment to its policy stance to address the improvement in inflation and the cooling of the labor market. Looking ahead, he said that if the inflation rate does not continue to decline to the target level and the economy remains stable, the Federal Reserve may keep interest rates unchanged for a longer period of time. Powell said that if the labor market unexpectedly weakens or the inflation rate declines faster than expected to the 2% target, the Federal Reserve may cut interest rates.

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