The Fed is close to reducing interest rates to stimulate the economy.

The Federal Reserve Chairman, Jerome Powell, has stated that the U.S. central bank is close to beginning the reduction of interest rates in an attempt to stimulate the economy and keep inflation under control. During his appearance before a Senate committee, Powell emphasized that the U.S. economy is in a strong position, with healthy growth and a strong labor market. Powell explained that the Federal Reserve expects to have more confidence that inflation will approach the 2% target before reducing the level of monetary restriction. Currently, benchmark interest rates are at their highest level in over two decades, between 5.25% and 5.50%. The decision to raise the previous rates was made to contain inflation, but now they are expected to be reduced to encourage consumption and investment. One of the concerning issues mentioned by Powell was the housing shortage in the country, a situation he attributed to restrictions on building new homes imposed by cities, supply chain issues stemming from the pandemic, and high interest rates. Despite the expected reduction in interest rates, the Fed chairman noted that the housing shortage will continue to be a challenge in the near future. Powell's statements suggest that the Federal Reserve is considering a reduction in interest rates throughout this year, a measure that will be taken with care and consideration. This decision will have a significant impact on the economy and is key to maintaining the balance between economic growth and price stability. In summary, the stance of the Federal Reserve under the leadership of Jerome Powell points towards a more flexible monetary policy, with the intention of boosting the economy and addressing current challenges. The coming months will be crucial in determining when and to what extent the reduction in interest rates will be implemented, in a global context marked by economic and financial uncertainty. With information from EFE and AFP.