Following Powell's tough remarks at the monetary policy meeting in December last year, journalists are preparing to welcome more exciting political independence remarks at Trump's first Federal Reserve meeting in his second term.

But the press conference of the Federal Reserve Chairman ultimately turned into a rather ordinary event, raising policy issues such as tariffs, mass expulsion, DEI, and climate change, but never directly addressing them.

The first question continues the heated debate from the last meeting, with CNBC mentioning a presidential statement calling for an immediate interest rate cut.

Powell replied, "I will not respond or comment on what the president says, it is inappropriate for me to do so

He added, "The public should have confidence that we will continue to work as usual, focus on using our tools to achieve our goals, really, keep a low profile, and do our job well. This is the best way for us to serve the public

When asked if he had any direct communication with President Trump, Powell said, "No contact

The Chairman of the Federal Reserve was subsequently asked whether he still believed that interest rates were significantly restrictive given the developments in financial and economic markets since the last meeting.

Powell said, "I don't think my assessment has really changed. Several things have happened, and we have received more strong data, but we have seen long-term interest rates rise, which may mean a tightening of financial conditions. We see the economy moving towards a 2% inflation level, and it has basically moved towards maximizing employment, so we are really focusing on moving towards our goals

He added, "Now, the policy restrictions have significantly decreased by 100 basis points compared to before we started cutting interest rates. Therefore, before we consider making adjustments, we will focus on actual progress in inflation or some weakness in the labor market

When asked about the increase in inflation expectations related to President Trump's proposed tariffs, the Federal Reserve Chairman stated that expectations seem to have been well anchored in important areas.

Powell said, "You will see a slight increase in short-term expectations, but not in long-term expectations. That's what really matters, which may be related to some new policies. I think the committee is largely waiting for policies to be introduced, and we don't know what will happen with tariffs, immigration, fiscal policies, and regulatory policies. I think we need to make these policies clear before we can start to assess their impact on the economy reasonably

Powell was also asked to ensure that under the leadership of the new government, the Federal Reserve will continue to operate independently of politics.

He replied, "As I have said countless times over the years, this is who we are, this is what we do. We study data, we analyze how it will affect the balance of prospects and risks, we use our tools, we try to give it our best understanding, our best ideas, and we try to achieve our goals. This is what we are doing, and we have always done it this way. Don't expect us to do anything else

He added: "A lot of research shows that this is the best way for the central bank to operate. This will give us the best opportunity to achieve these goals and benefit the American people. This has always been what we need to do, and people should have confidence in it."

Someone asked Powell whether, given recent developments, future interest rate cuts need to make greater progress on inflation than before.

He said, "I think it's the same, we want to see further progress on inflation. The story is there, we just need to look at the data. Ultimately, it's 12 months of inflation because it rules out possible seasonal issues, and we need to see that

He added, "Our goal is 2%, and we do intend to return to 2% in a sustainable way

Powell said it is difficult to accurately know how far the current federal funds rate is from the neutral rate. He said, "You know the role of neutral interest rates. I think our eyes tell us that our policies are having an impact on the economy, and that's the real question we need to ask. I think we see it having a meaningful impact on controlling inflation, which also helps to bring the labor market to equilibrium

He added, "What I want to say is that we are clearly above this level, and I don't think anyone knows what that is. But knowing this, coupled with a 100 basis point rate cut, means it's appropriate for us not to rush to make further adjustments

The Federal Reserve Chairman was also asked about the stock market sell-off triggered by artificial intelligence earlier this week. He said, "This is a big event for the stock market, especially for some parts of the market. What really matters to us is macro development, which means significant changes in financial conditions will continue for some time. I won't label these events, of course, we are all paying close attention to them with interest

Chairman Powell was asked if it is still possible to cut interest rates in March. He replied, "The economy is strong and the labor market is stable. We believe that the downside risks in the labor market have weakened and will continue on a sometimes slow and bumpy path. This tells me and the other members of the committee that the broad significance of the committee is that we do not need to rush to adjust our policy stance.