- Powell confirms US economy is not in a recession
- Interest rates remain unchanged for now
- Fed awaits more data before considering cuts
Powell Reassures: “No Recession in Sight”
Federal Reserve Chair Jerome Powell addressed growing concerns about the state of the U.S. economy, stating clearly that “the US is not in a recession.” His remarks come amid speculation over rising tariffs, persistent inflation, and mixed economic signals. According to Powell, strong job growth and a resilient labor market are key indicators that the economy remains stable and active.
Powell noted that while inflation remains above the Fed’s 2% target, it’s easing gradually. The strength of consumer spending and business investment supports his view that the economy continues to grow, albeit at a slower pace than last year.
Interest Rates on Hold for Now
In line with expectations, the Federal Reserve decided to keep its benchmark interest rate steady at 4.25–4.50%. Powell emphasized that the central bank is not in a rush to cut rates, highlighting the need to observe how recent tariffs are influencing the economy. While some Fed officials support an early rate cut, possibly in July, the majority—Powell included—favor a more cautious approach.
He explained that the full impact of the tariffs on inflation and consumer prices is still unclear. Depending on how these effects play out, the Fed could begin easing rates later in the year, with September or December being the more likely timeframes.
Market Outlook: Waiting for More Clarity
Powell’s comments are intended to stabilize market expectations. While Wall Street continues to hope for rate cuts, the Fed is prioritizing data over deadlines. The central bank is closely watching inflation metrics, the job market, and global trade developments to guide its decisions.
For now, Powell’s firm statement helps calm recession fears and signals that the Fed sees the current slowdown as manageable and not a crisis.
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- Jerome Powell: “The US Is Not in a Recession”
