Fed Chair Jerome Powell says no need to 'hurry' rate cuts
DALLAS - Federal Reserve Chair Jerome Powell told business leaders in Dallas that the Central Bank will not be in a rush to cut rates.
The latest economic report shows inflation ticked up slightly in October.
Rising costs were a big topic that Powell talked about at a Dallas Regional Chamber event on Thursday.
Powell said the economy is moving in a positive direction, but the Fed has not reached its goal.
"It seems like we are right where we need to be. I feel like the US economy is in a very good place and I feel like policy is in a good place," he told the audience.
Despite that feeling, Powell says policymakers will tread carefully before making any rate cuts.
"The economy is not sending any signals that we need to be in a hurry to lower rates," he said. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully."
Powell says there are lot of positives to point to.
"The labor force has expanded rapidly and productivity has grown faster over the past five years than its pace in the two decades before the pandemic," he said.
Powell also expects the housing market to continue to fluctuate, but he thinks the economy is not signaling a need to drastically lower interest rates.
"Our aim has been to return inflation to our objective without the painful rise in unemployment. While the task is not complete, we’ve made a good deal of progress toward that outcome," said Powell.
The price of everyday expenses continues to be a priority for Americans, influencing how many voted in the election.
President-elect Donald Trump pledged to raise taxes on foreign imports to drive more domestic production. Economists warn that businesses will pass those costs onto the consumers.
Powell was cautious to say how that could impact the economy one way or the other.
"The answer isn’t obvious until we see the actual policy and even then, it's not obvious. I think we reserve judgment until we actually know what we are talking about," he said.
While Powell's role is not political, everything in Washington is political.
Powell made headlines last week when he was asked if would resign under pressure from president-elect Trump.
He said no.
His term as chair ends in 2026, but his time on the Fed's board of governors continues until early 2028.
"I will just say, I will certainly serve to the end of my chair term, thats all I've decided and all I'm thinking about," Powell said.
Powell says the Fed is focused on getting to their 2 percent inflation goal.