Powell says the federal reserve is awaiting “greater clarity” of Trump’s policies before making the next price move

New York – Chairman of the Federal Board Jerome Powell On Friday, the central bank could wait to find out how President Donald Trump’s political actions are operated before moving again on interest rates.

with Nervous markets On Trump’s proposals on definitions and other issues, Powell repeated the statements he and his colleagues recently made advice to be patient with monetary policy amid the level of high uncertainty.

He said in a speech on the American monetary policy forum: “The White House” is in the process of implementing major changes in politics in four distinct areas: trade, immigration, financial policy and organization. “

Noting that “uncertainty about the changes and its potential effects are still high,” Powell said that the Federal Reserve “focuses on the signal of the noise with the development of expectations. We do not need to be in a hurry, and we are in a good position to wait for greater clarity.”

It seems that the comments at least are at least in contradiction with the growing market expectations for interest rate discounts this year.

Since the markets have stumbled through Trump’s positions on his agenda – specifically his customs tariffs – traders may prices equivalent to three discounts at quarter -points at the end of the year, starting from June, according to the CME’s Group Fedwatch Kel.

However, Powell’s comments indicate that the Federal Reserve will be in waiting and vision before setting more policy.

“Politics is not in a prior path,” he said. “Our current political position is in a good situation to deal with the risks and doubts we face in following both sides of our double mandate.”

The Politics Forum is sponsored by the Clark Center for Global Markets of the Bath School at the University of Chicago, and included many federal reserve officials in the public. Most central banking policy makers have recently said they expect the economy to return and inflation to return to the goal of the Federal Reserve by 2 %, with no clear rate because Trump’s policy appears more clearly.

In his evaluation, Powell also spoke in mostly positive phrases about the total environment, saying that the United States is in a “good place” with the “solid labor market” and the huge goal.

However, he noticed that recent feelings polls showed concerns about the inflation path, to a large extent that Trump’s introductory recently was the introduction of Trump. the Federal favorite scale Inflation of 12 months has been shown at a rate of 2.5 %, or 2.6 % when excluding food and energy.

“The way to the return of sustainable inflation to our goal is rugged, and we expect to continue,” Powell said.

The ruler of the Federal Reserve, Adriana Kogler, who was not in the forum in a speech on Friday in Portugal that she sees “important upward risks to inflation,” and said, “It may be appropriate to continue to keep the policy rate at its current level for some time.”

The notes also came on the same day that the Ministry of Labor mentioned A profit of 151,000 in non -agricultural salary statements For February. Although the total was a little less than the market expectations, Powell said the report is more evidence that “the labor market is strong and wide.”

“The wages grow faster than inflation, and more sustainable quickly than it was earlier in the epidemic,” he said.

The average profits per hour increased by 0.3 % in February and 4 % increased year on an annual basis. The job report also indicated that the unemployment rate has risen to 4.1 % with a decrease in domestic workers.