US Federal Reserve Chair Jerome Powell makes the interest rate statement markets were waiting for

A signal regarding interest rate cuts has come from Powell. Jerome Powell stated, "I don't think the next move will be an interest rate hike."

Regarding interest rate policy, the Fed Chair said, "I don't think the next move will be an interest rate hike. It is more likely that we will keep the policy rate where it is."

According to the report in Ekonomim, Powell said, "The US economy is performing very well. There is a very strong labor market in the US economy. Households are in good financial shape. Consumer spending and business investments are strong."

Powell used the following expressions:

"There is still a labor shortage in many industries. The labor market is moving toward a better balance. With supply and demand coming into better balance, there have been signs of gradual cooling in the labor market.

"IT MAY TAKE LONGER THAN EXPECTED"

It was noted that there was no further progress on inflation in the first quarter. We did not expect a smooth path for inflation; we must be patient and allow the policy to work.

We continue to expect GDP to grow by 2 percent or better. Confidence that inflation will decline is lower than it was before.

Restrictive policy to lower inflation may take longer than expected. Time will tell if we are restrictive enough in our policy. I don't think the next move will be an interest rate hike. It is more likely that we will keep the policy rate where it is."

News Source: 12punto