02:23 PM EST, 02/12/2025 (MT Newswires) -- Fed Chairman Jerome Powell (voter) repeated his comments that the FOMC will act based on incoming data and conditions and not based on the political influence that would call for rate reduction.

In fact, Powell said that the FOMC will need to keep rates restrictive as inflation remains above target. He added that the existing policy framework does not limit the ability of the Fed to respond to inflation but acknowledged that the FOMC was late in raising rates after the pandemic.

Atlanta Fed President Raphael Bostic (nonvoter) said it is uncertain when the next rate reduction will occur, suggesting that the Fed needs to determine the impact of fiscal policy changes, particularly tariffs, on inflation.

Recent comments of note:

(Feb. 11) New York Fed President John Williams said that the US economy is "in a very good place," but said that he remains committed to bringing inflation back down to 2% and that future policy decisions will be based on incoming data and risks to achieving their goals. Williams added that monetary policy is "well positioned" to achieve the Fed's goals but the outlook remains highly uncertain.

(Feb. 11) Fed Chairman Jerome Powell (voter) said that the FOMC does not need to rush to lower rates, but repeated that the FOMC will also be nimble in reacting to incoming data and conditions and could lower rates faster or hold rates steady for longer depending on what is needed, calling monetary policy "well positioned" to address any uncertainties and risks. Powell also committed to tailoring bank regulations to reduce unnecessary burden, saying that large banks' capital remains about right.

(Feb. 7) Fed Governor Adriana Kugler (voter) said that the FOMC will continue to watch incoming data and the economic outlook, noting that inflation has slowed from its post-pandemic peak but that recent progress has been "slow and uneven."

(Feb. 7) Minneapolis Fed President Neel Kashkari (nonvoter) said that the January data show that the labor market is still strong even after some slowing, adding that the FOMC remains committed to bringing inflation back down to 2%. Kashkari repeated that the FOMC will wait to see more information on tariffs before reacting to them.