Jerome Powell, the chair of the Central Bank, said regarding the timing of the interest rate hike, "We do not see a need to rush."
On the 24th (local time), Powell attended a hearing on the "semiannual currency policy report" before the U.S. House Financial Services Committee. In response to a question about the possibility of a rate cut in July, he noted, "If inflationary pressures remain subdued, we will reach a point where we can consider an early rate cut," but he added, "I do not want to point to any specific meeting."
Earlier, the Federal Reserve concluded a two-day meeting of the Federal Open Market Committee (FOMC) on the 18th, deciding to maintain the benchmark interest rate at the previous level of 4.25 to 4.50%, without yielding to continued pressure from President Donald Trump for rate cuts.
This marks the fourth consecutive freeze of the interest rates since the second term of President Trump began, but the Federal Reserve hinted that it may lower rates by 0.25 percentage points two times within the year.
Powell explained the reason for not rushing and maintaining a wait-and-see stance, stating, "This is because our economy and the labor market are strong."
He continued, "If the labor market weakens to a concerning level, it will impact that decision," adding, "We expect inflation to rise this summer, but if that does not happen, there will be lessons learned."
Regarding the potential impact of the Israel-Iran military conflict and the unstable ceasefire agreement on the Federal Reserve's economic outlook and currency policy direction, Powell stated, "It is too early to determine what the economic impact might be at this point," and added, "I would prefer not to speculate. Of course, we are monitoring the situation."