Powell Says Fed in No Hurry to Cut as Markets Continue to Swoon

4 April 2025 - 8:18 pm

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Powell Says Fed in No Hurry to Cut as Markets Continue to Swoon

The U.S. stock markets have been grappling with volatility in recent weeks, with many investors worrying about the potential for a recession and the economic impact of global uncertainties. However, Federal Reserve Chairman Jerome Powell has assured that the central bank is not in a rush to cut interest rates, despite the market’s recent declines.

In a recent speech, Powell emphasized that the Federal Reserve’s primary focus remains on controlling inflation, which has shown signs of being more persistent than anticipated. While markets have experienced significant drops, Powell made it clear that the Fed’s current stance is to hold steady on rates until it sees clearer signs of sustained economic slowdown or inflation dropping towards its target.

“We are prepared to adjust our policy stance if necessary, but we are in no rush to do so,” Powell stated. He added that the central bank would take a data-driven approach, considering factors such as inflation, employment, and global economic conditions when making future decisions.

Many analysts and investors had hoped the Fed would pivot to a more dovish stance, cutting rates to help alleviate the pressure on markets and boost economic growth. However, Powell’s comments signal that the Fed is not yet convinced that the economy is weak enough to warrant such a move.

The stock market’s reaction to Powell’s remarks has been mixed, with some investors interpreting the message as a sign that the Fed is committed to its inflation-fighting agenda, while others worry that prolonged high rates could push the economy into a deeper downturn.

As the economic landscape continues to evolve, market participants will be closely watching the Federal Reserve’s actions in the coming months. The central bank’s decisions will play a critical role in shaping the trajectory of both the U.S. economy and global markets.