Powell Says Fed Can Wait To Cut Interest Rates

Trump Is Urging The Fed To Cut Rates To Save Money On Interest Payments Affixed To The Vast National Debt

- AP [e-mail] WASHINGTON

The Federal Reserve will continue to wait and see how the economy evolves before deciding whether to reduce its key interest rate, chair Jerome Powell said Tuesday, a stance directly at odds with President Donald Trump's calls for immediate cuts.

"For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," Powell said in prepared remarks he will deliver Tuesday before the House Financial Services Committee.

Powell is facing two days of what could be tough grilling on Capitol Hill, as Trump has repeatedly urged the Fed to reduce borrowing costs. Powell has often received a positive reception before House and Senate committees that oversee the Fed, or at least muted criticism. Powell has also often cited his support in Congress as a bulwark against Trump's attacks, but that support could wane under the president's ongoing assaults.

Powell said, "is... to prevent a one-time increase in the price level from becoming an ongoing inflation problem."