Federal Reserve Chair Jerome Powell, speaking today at the U.S. Monetary Policy Forum in New York City on March 8, 2025, underscored the central bank’s cautious approach to monetary policy amid ongoing economic uncertainties.
Powell reiterated the Federal Reserve’s readiness to maintain current interest rates, adopting a “wait and see” stance as it closely monitors the impacts of recent policy changes and economic indicators. “We do not need to be in a hurry, and are well positioned to wait for greater clarity,” he said, emphasizing a deliberate strategy to navigate the complex economic landscape.
Powell highlighted the strength of the U.S. labor market, noting that employers added 151,000 jobs in February, averaging 191,000 monthly gains since September. The unemployment rate ticked up slightly to 4.1%, staying within a narrow range of 3.9% to 4.2% over the past year. He pointed out that wage growth has moderated to a more sustainable pace, balancing labor supply and demand and easing inflationary pressures from the workforce. “With wage growth moderating and labor supply and demand having moved into better balance, the labor market is not a significant source of inflationary pressure,” he explained, signaling stability in this key area.
On inflation, Powell acknowledged significant progress, with rates dropping from a mid-2022 peak above 7% to 2.5% in January. However, he cautioned that recent inflation readings remain above the Federal Reserve’s 2% target. “The path to sustainably returning inflation to our target has been bumpy, and we expect that to continue,” he said. Powell stressed the importance of not overreacting to short-term fluctuations, committing to closely track inflation trends to ensure alignment with long-term goals. “Inflation can be volatile month-to-month, and we do not overreact to one or two readings that are higher or lower than anticipated,” he added, reinforcing a steady, data-driven approach.
Powell also addressed recent trade policies, including the Trump administration’s announcements and delays on steep import tariffs targeting Mexico, Canada, and China. These shifts have contributed to market volatility and complicated the economic outlook, prompting Powell to emphasize the need for clarity before adjusting monetary policy. Given these factors, he indicated the Federal Reserve is likely to hold its key interest rate steady in the coming months, maintaining the current range of 4.25% to 4.5% set after a 100 basis point cut in late 2024 and unchanged since January. Stay updated on U.S. monetary policy shifts with Crypto Market Insights on news.thecoininfo.com, and explore in-depth analysis on The Coin Info Hub at thecoininfo.com.
