**Powell: Economy Back to Pre-Pandemic Levels, But Caution Needed**
Federal Reserve Chair Jerome Powell recently stated that the economy has returned to its pre-pandemic state. However, he emphasized that the balance is still being sought. According to Powell, a hasty reduction in interest rates could nullify the efforts made to curb inflation. He pointed out that while significant steps have been taken in economic recovery, maintaining the achieved stability requires careful consideration and continued vigilance.
“Although the economy has reached where it was before the pandemic, we are still in the process of establishing equilibrium,” Powell explained. “Reducing interest rates too quickly may undermine the actions we’ve taken to bring inflation under control.”
This cautious approach signals that while the economy is on solid ground, the Federal Reserve remains committed to ensuring long-term stability through measured and deliberate policy actions.