Quotes
We're in a pretty good place with this economy. We want to make more progress on inflation and we think our policy rate is in a good place, and we don't see any reason to be in a hurry to reduce it further,
Federal Reserve Chair Powell said regarding potential interest rate cuts during his testimony before the Senate on Tuesday
Look, they got [prices] up. I'd like to bring them down. It's hard to bring things down once they're up. You know, it's very hard. But I think that they will. I think that energy is going to bring them down. I think a better supply chain is going to bring them down."
In his Time magazine interview in late December, President Trump said
In some cases it doesn’t reach the consumer much, and in some cases it does,
Powell said
Inflation is stuck above target, with risks skewed to the upside, activity is strong, and the labor market appears to have stabilized around full employment,
Bank of America economist Stephen Juneau said in a note
We still expect high used and new car inflation because of wildfires, and acceleration in certain goods that seem to show strength in January (drugs, motor vehicle parts, recreation commodities),
Morgan Stanley said in a note
Even if tariffs are avoided, we think their potential keeps uncertainty about PCE inflation elevated and keeps risks to PCE inflation tilted to the upside. We now only look for one rate cut this year in June. The path for monetary policy in 2025 remains highly uncertain,
the note stated