“We haven’t lost it. I don’t believe we will. I certainly hope we won’t,” Powell said.
But Powell maintained the Fed has remained prudent on cuts, balancing the dual mandate of managing inflation and strengthening the job market.
“We at the Fed will continue to do our jobs with objectivity, integrity, and a deeper commitment to serve the American people,” Powell said at Wednesday’s press conference. The Fed has implemented 175 basis point cuts since September 2024.
Aside from those comments, the Fed chair remained tight-lipped on other political issues, responding with a tepid “I have nothing for you on that” to additional questions about the Fed’s subpoena and on the dollar’s slump.
The Fed held rates steady Wednesday at 3.50% to 3.75% as the central bank seeks to juggle the competing realities of the dollar’s slump and the stock market’s rally. The 10-2 vote to hold rates steady featured dissents from Governors Stephen Miran and—a recent Trump appointee—Christopher Waller. Both pushed for a quarter-rate cut, aligning with the White House’s demands.
The Fed chair offered advice he’d share with whomever becomes his successor: “Don’t get into elected politics,” in his pursuit to maintain the Fed’s independence.
