Chairman Powell "No signs of recession... Interest rate cut decisions will be made depending on future circumstances"

Fed Chair Powell Dismisses Both Rate Cuts And Recession Possibilities (Source: Federal Reserve)

Jerome Powell, Chair of the United States Federal Reserve (Fed), expressed a cautious stance on the possibility of interest rate cuts. When a reporter asked, “Earlier this year, you predicted two rate cuts, is there still no change in that stance?” Chair Powell answered, “We might reduce rates depending on future developments, or we might maintain the current level” and added, “There is no reason to make a hasty decision.”

He continued, “There is an FOMC meeting scheduled a few weeks from now, and we will reassess the situation and take necessary actions then,” emphasizing that decisions will be based on a thorough review of economic data and global conditions rather than an immediate policy shift.

Chair Powell also drew a clear line on the possibility of a recession. He explained, “Currently, economic data does not show signs of a recession. The economic impact from tariff data has not significantly manifested yet.” However, he noted that “Concerns among businesses and households are growing, and if these anxieties are not alleviated, they might be reflected in the data within a few weeks or months,” pointing out potential risks due to changes in economic conditions.

Chair Powell’s remarks suggest a flexible policy response to changes in the economic situation, while emphasizing that strong signs of a recession are not yet present. The market is closely watching to see if the Fed will present a specific policy direction at the next FOMC meeting.