MADRID, 22 (EUROPA PRESS)
Federal Reserve Chairman Jerome Powell has raised the possibility of lowering interest rates, which would be the central bank's first since Donald Trump returned to the White House, although he has emphasized the risks to inflation related to the tariffs implemented by the U.S. administration.
In his traditional opening remarks at the annual Jackson Hole Symposium, Powell noted that risks to inflation "are tilted to the upside," while risks to employment are tilted to the downside, posing "a complex situation" for the Fed, which must balance both aspects of its dual mandate.
In this regard, the US central banker emphasized that the Fed's interest rates are currently "100 basis points closer to neutral than they were a year ago," adding that the stability of the unemployment rate and other labor market indicators warrant caution when considering changes in policy stance.
"However, with policy in restrictive territory, the underlying outlook and the changing balance of risks could warrant adjusting our stance," Powell said.
In any case, the Fed chairman emphasized that monetary policy does not follow a predetermined course , adding that members of the FOMC, the governing body of the U.S. central bank, will make their decisions based solely on their assessment of the data and its implications for the economic outlook and the balance of risks.
