Federal Reserve (Fed) Chair Jerome Powell stated that there is no need to rush on interest rate cuts. Powell began his presentation of the semi-annual Monetary Policy Report to the U.S. Congress, emphasizing the strength of the U.S. economy in general and the significant progress made by the bank towards its goals in the past two years. He noted that labor market conditions have cooled slightly but remained robust, with inflation reaching close to the long-term 2% target but still somewhat higher. Powell reminded that the Federal Open Market Committee (FOMC) had cut the policy rate by 100 basis points since September last year, and adjusting the policy stance in light of progress in reducing inflation and cooling labor market conditions was appropriate. He added that they continue to reduce securities holdings. Powell mentioned, “Given the significantly less restrictive nature of our policy stance compared to before and the economy’s continued strength, there is no need to rush in adjusting our policy stance.” Powell emphasized that they will assess data, evolving outlook, and risk balance when evaluating the scope and timing of additional adjustments to the policy rate. He reiterated that they are in a good position to handle risks and uncertainties with the policy in both sides of their dual mandate. Powell also explained that they had completed the second periodic review this year of the bank’s monetary policy strategy, tools, and communication, focusing on the FOMC’s Long-Run Goals and Monetary Policy Strategy Statement and policy communication tools. He confirmed that the long-term 2% inflation target will be maintained. Addressing speculative tariff policy concerns, Powell emphasized that deciding and commenting on tariff policies was not the Federal Reserve’s job, stressing the importance of making wise responses and forming monetary policy. Powell also discussed how mortgage rates are not tied to policy rates but rather to long-term treasury rates and how the Fed’s control over long-term treasury rates is limited. Lastly, Powell acknowledged efforts to create a regulatory framework for stablecoins and assured that any attempt to access protected Fed data or systems would be reported to Congress.