What Federal Reserve Chair Jerome Powell said today during his congressional testimony
Detailed summary in English of what Federal Reserve Chair Jerome Powell said today during his congressional testimony—and how he indicated the Fed will manage its oversight and policy framework going forward:
1. On the Current Economic Outlook and Policy Stance
Powell opened his testimony by noting that the U.S. economy remains strong overall. He pointed out that—with unemployment holding near what he considers “full employment” (around 4 percent) and inflation still running above the Fed’s 2‑percent target—the recent progress gives the Fed room to maintain its current policy stance. In his view, there is no urgent need to ease monetary policy further. He stressed that reducing policy restraint too quickly could compromise the gains made in bringing inflation closer to target, while doing so too slowly might weaken economic activity. In other words, the Fed will continue to be data‐driven in its approach, adjusting rates only as warranted by evolving economic conditions.
2. On Managing Risks and Adjusting Oversight of Monetary Policy
Powell emphasized that the Fed’s job is not to comment on trade or tariff policies but rather to react in a “thoughtful, sensible way” to their economic impact. He acknowledged the uncertainties introduced by new tariff measures and other policy actions (such as those from the current administration) but reassured lawmakers that the Fed is well positioned to manage these risks. Importantly, he underlined that the central bank’s approach will remain flexible—if the labor market unexpectedly weakens or if inflation falls more quickly than anticipated, the Fed is prepared to ease policy accordingly. His remarks reflected a cautious stance designed to preserve the stability of both prices and employment.
3. On Future Oversight and Review of Policy Tools
Looking ahead, Powell announced that the Fed is conducting its second periodic review of its monetary policy strategy, tools, and communications. This review is intended to “take on board lessons” from the past five years and to refine the Fed’s approach as economic circumstances evolve. The process will include extensive outreach—such as “Fed Listens” events across the country and a dedicated research conference scheduled for May—with the goal of gathering a broad range of feedback. The insights from this comprehensive review will inform how the Fed continues to supervise (or “manage”) its policy framework and regulatory oversight, ensuring that its strategy remains robust and well anchored even as risks and uncertainties persist. Powell indicated that he expects to complete this review by late summer.
Together, these points show that Powell’s testimony was not only a reaffirmation of the Fed’s cautious stance on interest rates in the face of a strong economy but also a commitment to continuously monitor risks and refine the institution’s oversight and policy management processes through systematic review and public engagement.
