Breaking: Fed Chair Powell Says Central Bank Well-Positioned to "Wait and See" on Economy Slug: powell-fed-well-pos

Fed’s Powell: We’re in a Good Position to Be Patient on Economy

On the eve of his House Financial Services Committee testimony, Federal Reserve Chair Jerome Powell reinforced the Fed’s cautious stance by declaring that the central bank is well-positioned to “wait and see” how the economic landscape develops over the coming months.

Tariffs to Increase Inflation, Slow Growth

Powell is expected to highlight that rising tariffs, particularly those linked to recent global trade tensions, will likely elevate inflation pressures while simultaneously weighing on overall economic activity. This dual effect complicates the Fed’s policy path and supports a pause in rate decisions.

“The Fed remains vigilant, but we are not in a hurry to adjust rates until more data clarifies the path forward,” Powell’s prepared remarks suggest.

Monetary Policy Outlook: Patience Remains Key

Powell's reaffirmation of a data-dependent, cautious approach aligns with recent statements from other Fed officials who have downplayed urgency for immediate rate changes, citing uncertainty in labor markets and consumer spending.

With the Fed’s next rate decision looming, markets will be closely watching for any hint of a shift in tone during Powell’s testimony.

Implications for Markets and Investors

• US Dollar: Likely to remain under pressure if Powell avoids hawkish signals
• Gold & Equities: May see support amid dovish bias
• Bond Yields: Could drift lower if rate cut expectations build

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