Powell's Parting Words: Stay Neutral, Stay Strong

Jerome Powell, the head of the Federal Reserve, has some advice for whoever takes his place when his term ends in May. He says, "Stay out of politics. " This is important because the Fed needs to make decisions based on what's best for everyone, not just a few people. Powell believes that if the Fed starts making decisions based on politics, it will be hard to regain people's trust. Powell also talked about the economy. He said that even though people might not feel it, the economy is actually doing well. He also said that the Fed is keeping an eye on things and will make decisions based on the data they have. He didn't say whether they would cut interest rates at their next meeting in March.Powell also talked about a Supreme Court case that he thinks is very important. It's about whether the Fed can be controlled by the White House. Powell said he felt he had to attend the hearing because it's such an important case. The Fed also decided to keep interest rates the same at their latest meeting. They voted 10-2 to keep rates between 3. 5% and 3. 75%. Some Fed officials want to cut rates to help the job market, but others think rates should stay high to control inflation. There are some new people on the committee that makes these decisions. But even though there are new faces, their views on interest rates are similar to the people they replaced. Powell's term as chair is ending soon, but he might stay on as a governor to help protect the Fed. There's also a chance he could stay on as chair, but that's less likely.