MNI BRIEF: Powell Says Fed Can Wait For More Policy Clarity
MNI (WASHINGTON) - Federal Reserve Chair Jerome Powell said Wednesday the central bank is well-positioned to sit tight and wait for policy uncertainty to subside before making any decisions on interest rates.
"We are well positioned to wait for greater clarity," Powell told reporters during his press conference, citing two-sided risks to the outlook.
"Some near-term measures of inflation expectations have recently moved up. We see this in both market and survey based measures and survey responses. Both consumers and businesses are mentioning tariffs as a driving factor," he said. "Recent indications, however, point to a moderation in consumer spending following the growth seen over the second half of 2024. Surveys of households and businesses point to heightened uncertainty about the economic outlook. It remains seen how these developments affect future spending and investment." (See MNI INTERVIEW: Inflation Expectations Worrisome For Fed-UMich)