According to CCTV News, Federal Reserve Chair Jerome Powell stated on Jan. 28 local time that the next Fed chair should insulate the institution from U.S. politics.
Earlier that day, the Federal Reserve released the minutes from its latest monetary policy meeting, announcing its decision to keep the federal funds rate target range unchanged at 3.5% to 3.75%. Following the announcement, Chair Powell held a press conference to explain the decision and took questions from reporters on the current state of the U.S. economy and the selection of the next Fed chair.
Powell noted that the impact of tariff increases on consumer prices over the past year has largely been transmitted. "We expect the effect of tariffs on goods prices to peak and then begin to decline, assuming no new significant tariff hikes are introduced—which is what we anticipate for this year." He added that U.S. inflation this year has largely aligned with expectations, but the Fed has not yet made any decisions regarding the timing or pace of further policy easing.
Powell also emphasized his and other Fed officials' commitment to preserving the central bank's independence. Reflecting on his appearance at the Supreme Court for oral arguments last week, he described the case as perhaps the most significant legal case in the Fed's 113-year history, stating that after his careful consideration, he felt it would be difficult to explain his absence if I did not attend."
In a related development, U.S. Treasury Secretary Scott Bessent indicated that the nominee for Fed chair, proposed by President Donald Trump, could be announced in about a week.
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