NewsFlash / Nickel / Fed Chairman Powell Announces Adjustment of Overall Policy Framework
Fed Chairman Powell Announces Adjustment of Overall Policy Framework
iconMay 16, 2025 11:22
[Fed Chairman Powell: The US Fed is Adjusting its Overall Policy Framework] Fed Chairman Powell: The US Fed is adjusting its overall policy framework. Zero interest rates are no longer a baseline scenario. It is necessary to reconsider the wording regarding underemployment and the average inflation rate. It is expected that the PCE in April will fall to 2.2%, which is a mild figure, but it may still not reflect the upcoming tariff-driven price increases. Powell stated that some of the Fed's practices are permanent, such as the focus on inflation expectations. Sound inflation expectations enable the Fed to provide follow-up support for deployment efforts without jeopardizing inflation stability.
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