In an interview on December 4, Federal Reserve Chairman Powell emphasized that the Federal Reserve was created by Congress to represent all Americans and is not influenced by politics. He explicitly stated that the Federal Reserve would maintain its independence and oppose any suggestions by the President to comment on interest rate policies. Powell stressed that the Federal Reserve should not be subjected to political interference, and decisions should be based on economic data and long-term stability.
Regarding the U.S. economy, Powell noted that inflation is gradually decreasing, and the unemployment rate remains low, making the current economic situation "very good." He also emphasized that the U.S. economy is stronger than anticipated in September, allowing the Federal Reserve to take a more cautious approach when considering interest rate cuts. He mentioned that although inflation has not fully returned to the Federal Reserve's 2% target, the momentum of economic growth is strong, and there is no need to rush into cutting interest rates at this time.
Addressing the fiscal situation of the United States, Powell warned that the federal budget is on an "unsustainable path" and stated that this issue must be resolved as soon as possible to ensure long-term economic stability. He believes that the U.S. needs to take measures to reduce the budget deficit and prevent debt levels from continuing to rise, which could impact sustainable economic growth.
Powell's comments once again indicate that the Federal Reserve will continue to base its cautious monetary policy on economic data and not make hasty decisions influenced by short-term political factors.
