The economy is sending no signals that we need to hurry to lower the interest rate. The strength we are currently seeing in the economy gives us the opportunity to approach the decision with caution, he says in a speech in Dallas, reports CNBC.
Powell, head of the central bank Federal Reserve (Fed), also says that growth in the USA "is by far the best among all major economies in the world".
He also points out that unemployment has indeed risen, but the increase has stopped in recent months, and that it is still low from a historical perspective.
The Fed chief's words are a harsh rebuke to investors on the market who are longing for quick interest rate cuts.
Fed, on the other hand, is prioritizing the fight to get inflation down to the target of two percent.
Even before Powell opened his mouth, the development was negative on the New York Stock Exchange, and afterwards, prices moved further down. At closing, all three major indexes had fallen.
Last week, Fed lowered the interest rate by 0.25 percentage points to the interval 4.50-4.75 percent.
