Jerome Powell Speech: Fed Chair Hints At No Rush To Cut Rates

The Jerome Powell speech at the latest Federal Open Market Committee (FOMC) meeting confirmed that the Federal Reserve will keep interest rates unchanged. Fed Chair Powell stated that the economy remains strong, and inflation is still above the central bank’s 2% target.

The decision leaves the federal funds rate between 4.25% and 4.50%, marking a pause after three rate cuts in late 2024.

Jerome Powell Speech: No Rush to Cut Rates

During the FOMC meeting, Jerome Powell emphasized that the Federal Reserve is in no hurry to change its policy. He stressed that the inflation has to improve before any changes can be made

Speaking at the Federal Meeting in Washington, the Fed Chair Powell said, “With the economy continuing to be robust, we don’t have to rush to change the policy direction.”

Powell also stated that the Federal Reserve does not necessarily have to wait until inflation gets to 2% before reducing the interest rates.

”We do not have to wait for 2% inflation to reduce interest rates,” Powell said, which means that more rate cuts could follow in the future provided the economic situation warrants it.

Jerome Powell speech during the Federal reserve meeting 2025 also discussed the labor market and said that the unemployment rate has been moderate over the recent months.

”The unemployment rate has been broadly stable now for six months” said Powell. The policy statement also pointed out that the employment remains strong, with the hiring rate steady, which is beneficial for the economy despite the inflation issues.

Trump Slams Fed Chair Powell Over Inflation

This Jerome Powell speech occurs at a time when economists are worried about external risks that may make inflation worse, including the policies of President Trump. Some of Trump’s policies such as the tariff threat and the immigration measures are viewed by some as possible causes of inflation.

Moreover, after the speech, the US President, Donald Trump, attacked the Federal Reserve over high inflation pointing at Powell. Trump said;

“If the Fed had paid less attention to DEI, gender ideology, green energy, climate change, inflation would not have been an issue.”

The US President has consistently called for the Federal Reserve to reduce interest rates, saying that high rates make it costly for firms and individuals to borrow money. Powell, however, downplayed the political influence on monetary policy and said that the Fed is still sticking to the data.

“I’m not going to have any response or comment whatsoever on what the president said,” Powell stated. “We will continue to focus on our work and achieve our goals.”

Federal Reserve’s View on Crypto and Banking

In the Jerome Powell speech, the Fed Chair also discussed issues related to cryptocurrencies regulation and banking services.

”Banks are fully capable of managing the risks associated with crypto clients,” Powell said, making it clear that the Fed has no plans to ban financial institutions from dealing with digital assets.

Crypto markets initially pulled back after the Federal Reserve’s decision, with Bitcoin price dropping 1.2% and the total crypto market cap dropping 2.6%. However, Bitcoin later recovered by 4.5%, trading close to $104,783.

Therefore, as of now, with the inflation rate above 2%, almost all experts believe that the Federal Reserve will not change the rates at least until the next meeting in March. The FOMC will remain assessing the economic conditions such as the labor market and the price stability before taking further actions.