US Federal Reserve Chair Jerome Powell made it clear that the central bank is in no rush to adjust its monetary policy, particularly given the strength of the economy.
During the press conference, Powell stated that the Fed would need to see “real progress on inflation or some weakness in the labour market” before considering any changes to its current stance.
Powell reiterated the Fed’s commitment to its 2 per cent inflation target, emphasising that this goal remains unchanged. Regarding the Federal Open Market Committee’s upcoming review of its monetary policy framework, Powell clarified that the 2 per cent inflation target would not be up for discussion.
“The committee’s 2% inflation goal will be retained and will not be a focus of the review,”
The central bank decided to keep interest rates unchanged in January, following three consecutive meetings where rates were cut.
Attribution: Amwal Al Ghad English