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Jerome Powell says the Fed can afford to 'wait and see' before cutting rates. Other economists aren't so sure


Published on 2025-05-08 15:06:31 - Fortune
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  • A data-dependent approach might leave the central bank playing catch-up.

Jerome Powell, the Federal Reserve Chair, indicated that the central bank can afford to wait before cutting interest rates, emphasizing a cautious approach amid ongoing economic assessments. Despite some economists arguing for immediate rate cuts to stimulate growth, Powell stressed the importance of ensuring inflation is sustainably moving towards the Fed's 2% target. He highlighted recent economic data showing persistent inflation and a robust labor market, suggesting that the current monetary policy stance remains appropriate. Powell's remarks were made during a speech at the Economic Club of New York, where he reiterated the Fed's commitment to data-dependent decision-making, aiming to balance the risks of acting too soon or too late in adjusting rates.

Read the Full Fortune Article at:
[ https://fortune.com/2025/05/08/jerome-powell-fed-afford-wait-cutting-rates-economists/ ]