Powell underlines Fed’s obligation to prevent the “current inflation problem” despite Trump’s criticism

The president of the federal reserve, Jerome Powell, underlined Tuesday the commitment of the Central Bank to keep inflation under control, saying that he expects that political decision -makers remain pending until they have better management of prices’ impact tariffs.

In the remarks that will be pronounced at two Congress Committees this week, Powell qualified strong economic growth and the labor market to rely on full employment.

However, he noted that inflation is still greater than the 2% target of the Fed, with the impact that President Donald Trump’s prices will not yet clear.

“Policy changes continue to evolve and their effects on the economy remain uncertain,” said Powell. “The effects of prices will depend, among other things, on their ultimate level.”

Repeating what has become a familiar language of the Fed chief, Powell said that political decision -makers are “well placed to wait to find out more about the probable course of the economy before considering any adjustment to our political position”.

Prudent tones could further upset Trump, who has increased his longtime review of Powell. In his latest Broad side, published early Tuesday early on the president’s social platform, Trump said that he hoped that “Congress really works that very stupid and hard, finished”.

Powell will present his comments, as well as the report on the monetary policy of the Fed, first at the Committee of Financial Services of the Chamber on Tuesday morning, then to the Senate Banking Committee a day later.

Most of the discourse was a passout language that Powell used to describe the economy, which, according to him, remains solid “, a word he also used to characterize the labor market.

However, on inflation, he said that Fed’s favorite measure should drop up to 2.3% in May, the basic measurement excluding food and energy to reach 2.6%. The respective readings for April were 2.1% and 2.5%.

The prices have historically caused occasional price increases and were sometimes responsible for the longer -term inflation pressures. Powell said he and his colleagues from the Federal Open Market Committee will assess this balance and do not feel in a hurry to adjust politics until they have more data to see on the functioning of the prices this time. The FOMC is the adjustment arm of the central bank rates.

“The FOMC obligation is to maintain the long -term inflation expectations well anchored and to prevent a punctual increase in the price level from becoming a current inflation problem,” said Powell. He added that the Fed will seek to balance its double objectives of full employment and low inflation “keeping in mind that, without price stability, we cannot reach long periods of high labor market conditions which benefit all Americans”.

The FOMC voted unanimously last week to maintain stable rates.

However, an update of future expectations of individual members – the “points line” grid – has shown a division between members. Nine of the 19 civil servants favored Zero or a break this year, while eight saw two cuts and two others were waiting for three. The intrigue is carried out anonymously, there is therefore no way to know the perspectives of individual members.

In the past few days, however, two key voters from the FOMC, governors Michelle Bowman and Christopher Waller said they would promote a reduction in July as long as inflation data would remain in check. The consumer price index has only increased by 0.1% in May, echoing other indicators showing that pricing pressures so far.

Under -term market prices indicate only a 23% probability of a meeting of the meeting from July 29 to 30, with a much higher probability of the next reduction up to come in September, according to the Fedwatch gauge of the CME group.