#PowellRemarks The statements of the President of the Federal Reserve (Fed), Jerome Powell, are crucial because the Fed controls U.S. monetary policy, affecting the global economy. His comments often focus on inflation and employment, the two main objectives of the Fed. If inflation is high, the Fed raises interest rates to cool down the economy. If employment is weak, it lowers them to stimulate it.

​Recently, Powell has pointed out the tension between a labor market showing signs of weakness (lower job creation) and inflation which, although moderating, still remains above the 2% target. This dilemma forces the Fed to seek a delicate balance. Lowering rates too quickly could reignite inflation, while keeping them high for too long could cause a recession and an unnecessary rise in unemployment.

​In practice, this translates into a cautious stance. The Fed emphasizes that its decisions are "data-dependent" and not on a "preset course." This means they closely monitor every economic report (such as employment and price figures) before deciding whether to make rate cuts or adjustments to their balance sheet. The market interprets their words looking for clues about the future cost of credit and, therefore, about the direction of the economy.