(Finance) – “The US economy is in good shape, inflation is down, unemployment is at a low level. We are not yet where we want to be with inflation, but we are very close.” This was stated by the president of the Federal Reserve, Jerome Powellat the New York Times DealBook conference.
“We first raised rates, then we left them unchanged for 14 months and – when other central banks had already cut – we also started last – he explained – But now the economy is in a better position than it was in September and how we thought, therefore we can afford to be more cautious towards a neutral position”.
“The data received in the meantime, compared to September, showed that the economy is stronger than we thought, which the US economy is really strong“he stressed.
It is about thelast public appearance by Powell before the US central bank announces its next interest rate decision in two weeks.
To a question aboutindependence of the FedPowell said the central bank was created by Congress to act on behalf of all Americans without regard to politics. “It’s the law of the land,” Powell says, adding that he’s not worried that its independence may be altered by Congress.
Powell also rejected an idea suggested by Scott Bessent, Trump’s pick to be Treasury Secretary, to choose a “shadow” president of the Fed which would decrease its influence: “I don’t think that’s on the table at all“.
As for the debtPowell said the U.S. federal budget is on a “unsustainable path” and that it needs to be addressed as soon as possible.