The United States Federal Reserve is not in a hurry to reduce its short -term interest rate again given an economy that is “strong in general”, with low unemployment and inflation that remains above 2% of the Fed, The president of the FED, Jerome Powell, said in the opening comments prepared for delivery at an audience of the Senate Banking Committee.

“The economy is strong in general and has made significant progress towards our goals in the last two years,” said Powell, with an unemployment rate of 4% considered around the level of full employment, and inflation is more than even more than even More than half of a percentage point above the objective of the Fed.

“WIt is not necessary to be in a hurry to adjust our policy position. We know that reducing the restriction of policies too fast or too much could hinder progress in inflation, ”said Powell, reiterating the language used after the Fed at its January meeting maintained the stable interest rates and indicated that the smallest cuts They would depend on the decrease in inflation and the labor market remains healthy.

Referenced only obliquely in Powell’s opening comments were the “risks and uncertainties” faced of recent growth of the workforce and contemplates prosecutors. and regulatory reforms.

“We are attentive to the risks for both sides of our double mandate,” Powell said in reference to the established objectives of the Fed Congress of Stable Inflation and Maximum Employment. “Politics is well positioned to deal with the risks and uncertainties we face.”

Powell ‘S Senate’s testimony is the first of two Days of audiences in Capitol Hill That comes when the Fed fights with the way in which the policies promulgated and expected President Donald Trump impact on an economy that, according to many metrics, is already working well.

Passing carefully

Powell and other Fed officials are always careful to avoid the judgment on the wisdom of the Executive Branch or the actions of Congress, keeping its focus on how the economy changes as a result.

But given the place where the economy is located and the scope of what Trump seems to pretend, the premium in the Fed for now is to go slowly and expect nothing to break.

After his testimony of Senate Bank Committee orn Tuesday, Powell will appear before him Financial Services Committee of the House of Representatives at 10 am Est (1500 gmt) in Wednesday.

Both panels are now under republican control with new chairs. While Powell has made a priority in his almost seven years as president of the Fed to develop nearby ties in Capitol Hill, there will be a lot for the senators and representatives of both parties to question it.

Inflation has fallen and is expected to continue doing so, but some recent consumer surveys have shown that the public is becoming skeptical, a particular problem for Fed if that continues.

The possibility of pronounced tariffs on nearby commercial partners such as Mexico and Canada and in central industrial products such as steel and aluminum has caused a debate on the ways in which such import taxes or would not cause generalized inflation.

The administration has not yet implemented a detailed tax plan, expenses and deregulation, but the next negotiations on these problems could have a great influence on the performance of the economy.

Meanwhile, the Fed faces the rotation in one of its key positions with the resignation of Michael Barr as vice president of bank supervision and regulation and the eventual appointment by Trump of a replacement, with potentially important changes in the supervision of the financial sector.

For now, investors have read recent data, and in particular the January employment report showing the unemployment rate falling to 4% and a strong rhythm of salary increases, such as the argument of fewer cuts of feeding rates this anus. The markets still anticipate a reduction of a quarter quarter in the policy rate of the Central Bank in June, but have begun to set the price of any other movement this year.

The Fed at its January meeting held the stable policy rate in the range of 4.25% to 4.5% after reducing a complete percentage point in the last three meetings of 2024.

“We hope Powell will greatly reiterate the January FOMC meeting that with a strong economy, a solid labor market and irregular progress in inflation, the Fed is not in a hurry,” wrote Deutsche Bank economists in A preview of the audiences of the week. “Recent tariff ads have also strengthened the case of patience, since uncertainty and upward risks for inflation seem higher.”

Photo: fPresident of the Eder Reserve Board, Jerome Powell (AP Photo/Mark Schiefelbein, Archive)