The president of the Federal Reserve, Jerome Powell, went to the United States Congress on Tuesday for the first time since Donald Trump’s return to the White House. Powell has avoided in his initial speech referring to economic policy measures, such as tariffs, which can feed inflation and complicate their task of achieving price stability. In the exchange of questions and answers with the senators, Powell has reiterated that he is in favor of free trade, but admitting that tariff policy is not his competence. He has also rejected again the possibility that Trump can dismiss him or the rest of the Federal Reserve counselors: “It is quite clear that it is not allowed by law,” he said.
“With our policy position [monetaria] Now significantly less restrictive than it had been and the economy staying strong, we do not need to be in a hurry to adjust our policy, ”Powell has proclaimed in his initial speech. “We know that reducing the restriction of politics too fast or too much could hinder the progress of inflation. At the same time, reducing the restriction of politics too slow or too little could improperly weaken economic activity and employment, ”he added, giving up
His opening intervention has been manual. “As the economy evolves, we will adjust our political position in the way that best promotes our maximum employment and price stability objectives,” he said. “If the economy remains strong and inflation does not continue to move sustainably towards 2%, we can maintain the restriction of politics for a longer time. If the labor market weakens unexpectedly or inflation falls faster than expected, we can relax politics accordingly. We are attentive to the risks of both sides of our double mandate, and politics is well positioned to deal with the risks and uncertainties we face, ”he adds.
The president of the Federal Reserve has underlined the good moment that the economy passes and has not been left alone. Interestingly, it has been the republican senator for Montana John Kennedy who has attributed the merit of achieving the soft landing of the economy, controlling inflation without causing a massive recession or losses of employment. Powell has resisted singing victory, since inflation has not yet reached the goal of 2%, but Kennedy has granted me merit. “I never imagined that our landing would be so soft,” said the senator.
The Republican, in addition, has asked him if he would change the situation of the US economy for some other. “No, surely not,” Powell said in the question of whether he would change it for the economy of Germany. And the same refusal was repeated for China and France.
That driven by consumer spending. The unemployment rate is 4% and is still generated employment at a good pace. “In general, a large set of indicators suggests that the conditions in the labor market are in balance. The labor market is not a source of significant inflationary pressures. The solid conditions of the labor market in recent years have helped reduce long -standing disparities in employment and income among demographic groups, ”said Powell.
As for inflation, he has indicated that it has been significantly reduced in the last two years, but it is still something high in relation to the long -term objective of 2%.
Democratic senators, meanwhile, have drawn attention to how unprotected the clients of financial entities will remain with the dismantling of the Office for Financial Consumer Protection (CFPB). In addition, they have underlined regulatory asymmetry, as the Federal Reserve continues to occupy possible abuse of banks with less than 10,000 million dollars. On account of that body and their access to treasure payments, they have lashed out against Elon Musk and their government efficiency department (Doge).
Powell has tried And if that would be efficient, as is happening in some organisms and the Doge has proposed in its incentive low plan.
In particular, he has declined to openly pronounce on Trump’s commercial policy. “It remains to be seen which tariff policies will be implemented, it would be irresponsible to speculate,” he said. Previously, before another question, he has expressed his general position, but without entering the rag at all. “I think the standard case for free trade makes sense, but it didn’t work so well when we have a very big country [en relación a China] that really does not follow the rules. In any case, it is not the best work to do or comment on tariff policy. Actually, that is for elected politicians, and it does not correspond to us to say. Our work is to try to react reflectively and sensiblely and apply monetary policy to be able to fulfill our mandate, ”he said.
The president of the Fed went to Congress to face the crossfire of Republicans and Democrats about his monetary policy “because Jay Powell and the Federal Reserve could not stop the problem they created with inflation, I will do so by releasing the production of US energy , drastically reducing regulation, rebalancing international trade and reactivating US manufacturing, but I will do much more than stop inflation, I will make our country again financially and in other aspects! ”, Shortly after the press conference in The one that Powell explained that the Central Bank had decided to pause in the type sales.
“If the Fed had dedicated less time to the DEI [diversidad, igualdad e inclusión]gender ideology, ‘green’ energy and false climate change, inflation would never have been a problem. Instead, we suffered the worst inflation in the history of our country! ”The president lied in that message. Inflation reached in recent years a maximum of 9.1% in June 2022. Although that rate is the largest in the last four decades, it is far from 14.8% of 1980 or the levels greater than 10% in which stood in 1974 and 1979, not to mention the rates of the order of 20% of some moments of the 1940s, 1920 and 1920.
In his last press conference, in which Trump asked that the types lower “immediately.” “I will not answer or comment at all what the president has said. It is not appropriate to do it. But the public must trust that we will continue doing our job as we have always done, focusing on using our tools to achieve our goals and really keeping calm and doing our job, and this is how we better serve the public, ”said the president then of the Federal Reserve.
[Noticia de última hora. Habrá ampliación en breve]
