Jerome Powell, the chair of the U.S. Federal Reserve (Fed), expressed that he would not rush to change currency policy.
In a speech at a currency policy forum held in New York on the 7th, Powell said, “(The Fed) does not need to rush” and added that “currency policy is well established enough to wait until the impact of the new administration's policy change becomes clearer.” He noted, “The new administration is pushing significant policy changes in four areas: trade, immigration, fiscal policy, and regulation,” and added, “The uncertainty regarding policy changes and their potential impacts remains high. The Fed is focusing on analyzing new information.”
On this day, Powell also mentioned inflation in the U.S. He said, “The Fed is paying close attention to various measures of inflation expectations,” and remarked that “both household and corporation survey respondents mention tariffs as the primary driver of inflation.” However, Powell explained, “Most long-term inflation expectation indicators are stable and in line with our 2% price target.”
Powell's remarks are interpreted as an intention to alleviate market concerns that recent U.S. government high tariffs policies will drive up prices. Meanwhile, Powell is scheduled to hold a Federal Open Market Committee (FOMC) meeting on the 18th and 19th to determine currency policy.