Powell: Fed in no rush to adjust policy amid Trump administration’s economic shifts

Hind Al Soulia - Riyadh - WASHINGTON — Federal Reserve Chair Jerome Powell stated on Friday that the central bank is in no hurry to alter its policy stance as the Trump administration's trade, immigration, fiscal, and regulatory policies continue to evolve.

Speaking at an event hosted by the University of Chicago Booth School of Business, Powell acknowledged that while there have been significant shifts in these key policy areas — particularly in trade — uncertainty remains high.

He emphasized that the Fed is focused on distinguishing meaningful economic signals from short-term fluctuations as it assesses the outlook.

"Despite elevated levels of uncertainty, the U.S. economy continues to be in a good place," Powell said. "We do not need to be in a hurry and are well-positioned to wait for greater clarity."

He noted that surveys of households and businesses reflect growing uncertainty about the economic outlook, while recent data suggests consumer spending may moderate.

"It remains to be seen how these developments might affect future spending and investment," he added.

Powell also anticipated continued, though uneven, progress in bringing inflation down to the Fed’s 2% target.

"The path to sustainably returning inflation to our target has been bumpy, and we expect that to continue," he said.

He pointed to progress in key inflation categories, including housing services and non-housing market-based components.

The Fed chair reiterated that if inflation does not continue to decline toward the central bank's target, policymakers can maintain their current stance for a prolonged period. Conversely, if the labor market weakens and inflation falls more quickly than expected, the Fed would consider easing monetary policy. — Agencies