Powell in No Rush

• Fed Chair Powell reaffirmed that the FOMC is in no rush to adjust interest rates, citing a balanced labour market and well-anchored long-term inflation expectations.
• Powell avoided questions on tariffs, stating that it is not the Fed’s role to comment on trade policy but acknowledged that consumers may still bear the cost of higher tariffs.
• Front-end US Treasury yields rose slightly by 1–2bps, but the broader market reaction was muted, as Powell’s cautious approach was already well-anticipated.
• For Australian markets, the Fed’s cautious stance suggests global yields may remain elevated, potentially reinforcing the case for patience in the RBA’s rate-cut timeline.