Washington: US Federal Reserve Chair Jerome Powell said Tuesday that they are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments to the policy stance of the central bank.

According to Anadolu Agency, Powell highlighted during his speech at the Semiannual Monetary Policy Report to Congress that policy changes continue to evolve, and their effects on the economy remain uncertain. He emphasized that the impact of tariffs will depend on their final level, noting that expectations of the tariff levels, and thus the related economic effects, peaked in April and have since declined.

Powell noted that despite a decrease in tariff expectations, any increases this year are likely to push up prices and weigh on economic activity. He reaffirmed the Federal Open Market Committee's obligation to ensure that longer-term inflation expectations remain well-anchored and to prevent a one-time increase in price levels from becoming an ongoing inflation issue. He stressed that the effects on inflation could be short-lived or more persistent.

Powell reiterated that the Federal Reserve aims to balance the goals of maximum employment and price stability while taking necessary actions to fulfill this obligation. He stated that for the time being, they are well-positioned to wait for more information about the economy's likely course before considering any changes to their policy stance.

The Federal Reserve recently kept its policy rate unchanged at the target range of 4.25% - 4.50%, in line with expectations. In its policy rate decision statement, the central bank cautioned that while uncertainty about the economic outlook has diminished, it remains elevated. The bank maintained the rate at the historically high level of 5.5% from July 2023 to September 2024, before gradually lowering it to 4.5%.

Additionally, the Fed kept its forecast for the year-end policy rate at 3.9%, indicating that it still considers implementing two rate cuts this year.