"Fed mouthpiece": The Fed will calmly decide when and whether to cut interest rates

Odaily reports that Nick Timiraos, a Wall Street Journal reporter known as the "mouthpiece of the Federal Reserve," pointed out that Federal Reserve officials are encouraged by recent inflation data, which shows that price pressures remain moderate, suggesting that inflation may soon be closer to the Federal Reserve's 2% target. Federal Reserve Chairman Powell will begin two days of congressional testimony on Tuesday, conveying a simple message to Congress: Given the strong economic conditions, the Federal Reserve can calmly decide when and whether to cut interest rates. At the last three meetings of 2024, the Federal Reserve cut interest rates by a full percentage point, after rates had remained at their highest level in nearly two decades. In his speech to the Senate Banking Committee, Powell is prepared to say, "Because our policy stance is now much more accommodative than before, and the economy remains strong, we do not need to rush to adjust our policy stance." Powell defended last year's interest rate cuts, saying it was a necessary recalibration of his policy stance to address improving inflation and cooling labor market conditions. If the labor market unexpectedly weakens or inflation declines to its 2% target faster than expected, the Federal Reserve may cut interest rates. (Gold Ten)