06/03/2024 – 13:33
The president of the Federal Reserve (Fed, the North American central bank), Jerome Powell, reinforced this Wednesday, 6, that the pace of interest cuts will depend on the evolution of the United States economy. In a hearing in the country's House of Representatives, Powell acknowledged recent progress in combating inflation, but said the Fed is waiting for more indicators to be confident that the country is moving towards price stability in a sustainable way.
Powell added that the monetary authority may act more cautiously in the next steps due to the strength of activity and the job market.
The president of the Federal Reserve also stated that the US Central Bank is analyzing the comments made in the public consultation on the proposed reform of banking regulation, known as Basel III.
At the hearing in the US House of Representatives, Powell did not rule out the possibility of the Fed releasing a new proposal as a result of the process. “There will be broad and material changes to the proposal,” he said.
The central banker added that residential services inflation in the US is cooling down and should continue to decline in the future, while goods prices are already showing deflation in the US.
According to him, the Fed will likely begin its periodic review of its monetary policy strategy at the end of this year and should complete it in 2025.
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