Insignia Consultants | Fed's Powell, quizzed about trade, Musk, and bank safety, says economy is fine
Fed's Powell, quizzed about trade, Musk, and bank safety, says economy is fine
U.S. Federal Reserve Chair Jerome Powell, in his first appearance before Congress since the inauguration, vouched for the strength of the economy President Donald Trump inherited even as he deferred on questions about tariffs, Elon Musk's role in government, bank account safety, and other issues reflecting the unsettled nature of the administration's first weeks.
Powell's twice-a-year trips to Capitol Hill often go far beyond the ostensible purpose of discussing the state of the economy and monetary policy - issues where the Fed chair had much to say, almost all of it good given a 4% unemployment rate, inflation nearing the Fed's 2% target, and ongoing growth.
“We are in a pretty good place with this economy," Powell said, noting that the Fed was in no hurry to make any further interest rate cuts, but stood ready to do so if inflation declines further or the job market weakens.
But in over two hours before the Senate Banking Committee, under its new chair South Carolina Republican Tim Scott, the Fed's core mission of maintaining stable prices and maximum employment seemed secondary.
