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Fed chair Powell echoes worries in interest rate forecasts

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  Federal Reserve Chairman Jerome Powell echoed the market's concern over "uncertainty" tied to tariff and economic policies but noted that solid labor markets and easing inflation pressures likely mean the central bank remains in "no hurry" to change its key policy rate.


Federal Reserve Chair Jerome Powell, in a recent speech, expressed concerns about the potential for higher interest rates than previously anticipated, reflecting the ongoing battle against inflation. Powell highlighted that while inflation has shown signs of cooling, it remains above the Fed's 2% target, suggesting that more rate hikes might be necessary. He emphasized the Fed's commitment to achieving price stability, even if it means maintaining higher rates for an extended period. Powell also noted the risks of not tightening policy enough, which could lead to inflation becoming entrenched, versus the risk of over-tightening, which could unnecessarily weaken economic activity. His comments have led to increased market volatility as investors adjust their expectations for future rate movements.

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