Federal Reserve Chairman Powell: The Fed does not need to rush to cut interest rates

ChainCatcher news, Federal Reserve Chairman Powell conveyed a simple message to Congress on Tuesday as he began a two-day hearing: due to strong economic performance, the Fed can take its time deciding when and whether to cut interest rates.

Powell will tell lawmakers at the Senate Banking Committee: "Given that our current policy stance is not as restrictive as it once was, and the economy remains strong, we do not need to rush to adjust our policy stance." Powell also defended last year's rate cuts, stating that they were a necessary adjustment to his policy stance in response to improving inflation and a cooling labor market.

He indicated that if inflation does not continue to decline to target levels and the economy remains stable, the Fed may keep interest rates unchanged for a longer period. If the labor market unexpectedly weakens, or if inflation falls faster than expected to the 2% target, the Fed may cut rates.