Powell Will Keep Waiting to Cut

The labor market remains Powell’s most cited anchor, not tariffs

Federal Reserve Chair Jerome Powell emphasized to the House Financial Services Committee that the Federal Open Market Committee (FOMC) remains in wait-and-see mode, citing resilience in both the economy and the labor market. While open to cutting rates in response to weakening data, Powell signaled no urgency for immediate action. Goldman Sachs interprets this as support for a policy of patience amid elevated uncertainty, particularly surrounding tariff-induced inflation.