Powell mentioned an unemployment rate of 4%, considered close to the level of full occupation, and even more than half a percentage point on the objective of the Fed.
“We do not have to hurry to adjust our political position. We know that reducing political moderation too fast or excessively could hinder the progress in inflation,” Powell said.
The official used the same tone as the Fed at its January meeting, when it had stable interest rates and indicated that future cuts would depend on inflation falling and the labor market remains healthy.
Powell referred only indirectly to the “risks and uncertainties” faced The workforce and contemplates tax and regulatory reforms.
“We are attentive to the risks for both sides of our dual mandate,” Powell said in reference to the Fed objectives established by the Congress of stable inflation and maximum employment. “Monetary policy is in a good position to deal with the risks and uncertainties we face.”
Powell’s testimony in the Senate is the first of two days of audiences in the Capitol.
