PANews reported on January 30 that Fed Chairman Powell said at a press conference that the U.S. economy remains strong overall, and the labor market, although cooling, remains robust. He pointed out that inflation is close to the target but still slightly higher, and the labor market is not the source of current inflationary pressure, so the Fed does not need to rush to adjust the policy interest rate. Discussions on the policy framework have already begun at this meeting.

Powell stressed that the Fed needs to make substantial progress in inflation or weaken the job market before considering cutting interest rates, and expects inflation to improve further in the future. He said that the Fed's current policy is "substantially but not highly" restrictive, and overall financial conditions are slightly loose.

In addition, Powell mentioned that artificial intelligence is an important factor in the development of the stock market, but the market volatility it causes is not a continuous change, and the Fed is more concerned about the macro economy. He also said that the Fed's interest rate level is significantly higher than the neutral interest rate, and the reserve funds in the balance sheet are still sufficient.

When asked whether a rate cut is possible in March, Powell reiterated that there is no need to rush. He pointed out that the Fed will take time to assess the impact of the new government's policies, including tariffs, immigration, fiscal and regulatory policies, and stressed that it will not rush to formulate policies to ensure that policy responses are fully understood.