(Bloomberg) -- Here are the key takeaways from Federal Reserve Chair Jerome Powell’s interview on Monday with David Rubenstein at the Economic Club of Washington DC:
- With the Federal Open Market Committee meeting in two weeks, Powell declined to give any guidance on the timing of interest-rate moves. He said he wouldn’t give any signals on rates and policymakers will make calls “meeting by meeting.” The absence of any implied guidance makes a July rate move quite unlikely.
- Powell said second-quarter economic data including last week’s consumer price report “do add somewhat” to confidence that inflation is heading down to the central bank’s 2% goal — a condition for rate cuts. He repeated labor markets are now in a “better balance,” and an unexpected weakening in labor markets would also be a reason to adjust rates.
- Powell says he plans to serve out his full term, which is scheduled to end in 2026, amid some speculation that former President Donald Trump could seek to replace the Fed chair early if he wins the election. Asked by Rubenstein about whether he would serve another term if asked, Powell declined to answer. The chair gave a strong defense of central bank independence, which he said most in Congress agree with.
- When asked about an assassination attempt against Trump at a rally in Pennsylvania on Saturday, Powell condemned the violence and said he was grateful the injuries to Trump were not more serious. Separately, Powell warned that the US budget was on an unsustainable path and it will take bipartisan action to address deficits.
- Market reaction was muted as Powell largely repeated themes from a week ago. Stocks rose toward all-time highs, while the yield on 10-year Treasuries advanced four basis points to 4.23%.
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