Federal Reserve Chairman Jerome Powell stated that the central bank is taking a cautious approach, waiting to see the effects of President Trump’s policy actions before making further moves on interest rates.

Powell emphasized the uncertainty surrounding Trump’s proposals on trade, immigration, fiscal policy, and regulation, which could impact the economy.

While markets anticipate interest rate cuts, Powell suggested the Fed will remain patient, as the current policy stance is well-suited to address economic risks, CNBC has reported.

Powell also noted the positive macroeconomic environment, with solid labor market growth and inflation moving toward the Fed’s target, despite concerns over tariff-induced inflationary pressures.

Written by B.C. Begley