#TrumpVsPowell Summary of the Fed Chairman's speech in Chicago
Positive:
- The U.S. economy remains strong despite the unstable situation
- The labor market is solid, not causing inflation
- The Fed prioritizes its main task of keeping inflation expectations stable
- Crypto is becoming increasingly popular, a legal framework for stablecoins is needed
- The bank will loosen regulations on crypto, legal framework will be similar to 2020
- Ready to inject money into central banks if there is a shortage
Negative:
- Higher than expected taxes could lead to high inflation and hinder growth
- Disruptions in the automotive industry could cause prolonged inflation
- May fall into a scenario where employment & price stability conflict with each other
- The Fed will wait for "clarity" before changing policy